Banking on a ‘stable government’ to create more jobs in the current slowdown in the economy, India Inc has said that such a scenario would lead to a 30-40 per cent boost for hiring activities.
Agencies quoted analysts who said that the forming of a stable government could create 2 million new jobs. The report coming days after global financial firm Goldman Sachs endorsing the ‘Gujarat Model’ of development. Goldman Sachs had said that 40 million new jobs could be created in manufacturing alone if other states in India followed the Gujarat model of development.
Human resources experts reportedly said that corporate India need to employ 12-14 lakh new workers to meet existing business demands. India inc has been critical of ‘policy paralysis’ leading to stalling of projects due to delayed clearances from various departments leading to subdued growth and investments. Minimal poll alliances could hold the key to boost in hiring activity as this could lead to over 20 lakh new jobs created in the current year, it was reported.
If the predictions are true, then these estimates would double last year’s creation of new jobs at 10 million. It was reported that the low hiring last year was due to bad economic trends which resulted in large scale layoffs. India goes into polling from April 7, 2014 and will last over a month.
Goldman Sachs had gone as far as to say that proper implementation of reforms in subsidies can lead to over 110 million jobs within the next decade. Interestingly, if the country is able to create 110 million jobs, than this would be higher than the US, China, Russia and Brazil combined, the global financial major had said.
The latest report identified that recent surge in political advertising had seen demand go up for sectors like public relations, event management as well as market research and social media. It is estimated that over $5 billion is being spent for pre-poll advertising by political parties together, making it one of the biggest in the world.
According to Goldman Sachs India created only 2 million jobs per year between 2004-05 to 2011-12 compared to 12 million per year from 2000 to 2005.