Jobs in tier II towns grows 200% in July

Chandigarh, Lucknow, Vadodara among top job creators.

India’s tier II towns have registered a job growth rate of over 200 per cent in July 2011 vis-à-vis corresponding month last year.

This is despite the fear of a slowdown in services and export sectors, as smaller cities continued to create job opportunities.

According to a recent study by Associated Chambers of Commerce and Industry of India (Assocham), 13,776 job opportunities came up in tier II cities as Chandigarh (2.3 per cent), Lucknow (1.1 per cent), Vadodara (0.9 per cent), Jaipur and Patna (0.8 per cent each) emerged on top.

Surat, Guwahati and Indore registered 0.7 per cent share each in employment generation, says the Assocham Placement Report. It analysed trends in job openings in the wake of a recent slowdown in the manufacturing sector among 56 major Indian cities across 32 sectors from a sample of 1,10,000 job opportunities.

Tier I cities emerged as the most lucrative employment destinations with a share of 76 per cent in total job creation. Tier II and tier III cities acquired a meagre 12 per cent share each.

As many as 84,250 jobs were generated in tier I cities. Delhi-NCR, Mumbai, Bangalore and Chennai ranked on top with 18.5 per cent, 12.6 per cent, 10.5 per cent and 7.5 per cent share respectively.

However, attrition in some sectors rose ‘phenomenally’ at 55 per cent, with visible movement in junior, mid and senior management levels.

“Hiring activity in July was widespread across management levels as key industry sectors looked to consolidate staff strength to improve business activities,” Assocham secretary general D S Rawat said.

IT sector acquired lion’s share of 36 per cent, while banking and financial services sector ranked second with 8.5 per cent share followed by automobile and education sectors which have registered 5.7 and 5.5 per cent share respectively in total employment generation in July.

“A robust growth in employment generation across varied sectors is expected during rest of the year and a healthy growth of 15-20 per cent is expected this year,” he said.