Monday, November 29, 2010

Jobs in IT and banking sector will grow in the coming years, says CRISIL report

A report published by CRISIL Centre Economic Research says that jobs in IT and banking sector are expected to grow in the years to come. The report on the Indian education sector titled, ‘Skilling India – The Billion People Challenge’ was published by the CRISIL Centre for Economic Research. 

It is believed that the demand for labor would be growing rapidly in the next five years in industries such as IT and financials services, which are regarded as knowledge based industries. The same would be seen in construction industry, mining and healthcare. So people with vocational skills such as technicians, welders and so on would be required on a large scale.

The report also forecasts:
  • 0.62 million additional jobs would be generated in the IT sector. 
  • 0.25 million and 0.09 million jobs over 2011 to 2015 would be added in both public and private sector banks. 
  • Labor-intensive jobs would be created in order to absorb the workforce from the agriculture industry. 
  • The industrial sector would have to double its labor demand from 119 million (in 2010) to 274 million by 2030 so that share of employment from agriculture sector gets reduced.
Thus a kind of transition would be seen towards a knowledge based economy and all this would require a new generation of educated and skilled workers. There can be skill shortages which would require vocational training and there can also be unemployment in the knowledge based sector.

The report says that the three factors determining the growth of labor productivity are:
  • More capital as compared to workforce 
  • Technological advancement 
  • Quality of workforce
It is predicted that there would be shortfall of skilled workers in India which can affect the rate at which productivity rises. Due to increase in demand, if low skilled workers are added to the workforce, the overall workforce quality and productivity growth could be affected. The skilled workers would also be needed to put in longer hours in their work.

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