Not unemployment, but productivity is India's problem: TeamLease’s Manish Sabharwal
A TeamLease survey showed hiring of freshers has picked up significantly and this trend is expected to accelerate. IT, telecom, e-commerce and the digital ecosystem has the most traction. But that isn't enough to boost employment across the economy.
A TeamLease survey showed hiring of freshers has picked up significantly and this trend is expected to accelerate. IT, telecom, e-commerce and the digital ecosystem has the most traction. But that isn't enough to boost employment across the economy.
CNBC-TV18 spoke to Manish Sabharwal of TeamLease to understand job creation and income growth. "There is a bipolar sort of recovery in the labour market either at the extreme cognitive level of people who use their minds or if you use your hands and legs which is you work in sales, customer service and distribution. The COVID-19 has two impacts, one is there is a super cycle of digitisation. IT services companies is leading to super cycle of fresher hiring.”
On unemployment rate, "CMIE says the unemployment rate is back to what it was pre-COVID. I have always argued that unemployment is the wrong number to think about India because since Independence that has stayed between 6-9 percent. I think India's problem is not unemployment, it is productivity and COVID reforms are really trying to solve the problem of productivity."
Talking about sector specific job creation, Sabharwal said, "It is FMCG, domestic consumption so while software and IT is being driven by exports, this early wave that we are seeing is largely driven by FMCG. There is still a pocket of hospitality that cannot be done with social distancing and which people are still hesitant about. But net-net the super cycle in e-commerce, logistics, and warehouses at the bottom of the pyramid is still leading to a net positive for freshers."
For full interview, watch accompanying videos.
(Edited by : Priyanka Rathi)
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