The employment upgrade rate of Indian industry has declined to 1.5% in FY 2024, while it was 5.7% in FY 2023

According to a latest report released by Bank of Baroda (BoB), the employment scenario in the Indian corporate sector looks bleak.
The public sector bank, based on an analysis of balance sheets of 1,196 companies, pegged the employment growth rate at 1.5% in FY24, down from 5.7% in FY23.
In absolute terms, companies added less than 100,000 employees in FY2024, compared to 333,000 in FY23.
The reason for the decline in employment growth rate is the increase in hiring after the pandemic in FY 2023. According to the report, the same financial year also saw significant attrition including voluntary and involuntary resignations. However, the need to increase employment was not as evident in FY2014, especially as some sectors rationalized staff based on business requirements.
The IT sector, with about 25 per cent of the total workforce, and banking, with 22 per cent, dominate employment in the corporate sector. The finance, healthcare and auto sectors come second with a combined 14.5 percent share. According to the report, these eight sectors significantly influence the overall employment trends.
The report highlights the “job destroyers” category, where headcount reductions were notable, especially in the IT and textile sectors. On the other hand, “job accelerators” including services, steel and construction saw double-digit employment growth, partly driven by government stimulus in the housing sector.
The report highlights the “job destroyers” category, where headcount reductions were notable, especially in the IT and textile sectors. On the other hand, “job accelerators” including services, steel and construction saw double-digit employment growth, partly driven by government stimulus in the housing sector.
The report said the data focuses on employment in India, excluding outsourced workers, which is not reflected in the official headcount.