Dalal Street has been buoyant lately, and the Finance Ministry optimistic about signs of recovery. But latest data from the Labour and Employment Ministry indicate that even if there are some green shoots, they are, at best, the harbingers of jobless growth.

As per employment estimates for the first quarter of this fiscal, direct employment in the organised sector has gone down by a massive 1.71 lakh, a Labour Bureau survey on the effects of the economic slowdown has found. Figures from the Employees Provident Fund Organisation (EPFO) buttress this finding: EPF withdrawal requests between April and June 2009 have touched a record 31.51 lakh, indicating largescale layoffs and a severe cash crunch for the working class.

The Textiles industry is the worst hit, having shed 1.54 lakh jobs between April and June 2009. The IT/BPO sector comes next, having reported 34,000 job losses in the same period, the Labour Bureau survey found. The Gems and Jewellery sector reported 20,000 job losses, though some employers also reported worker shortages.

Overall employment across the eight sectors surveyed — including Metals, Leather, Automobiles, Transport and Handloom/Powerloom — fell by 1.31 lakh in the first quarter of this financial year.

Export units remained badly hit. Across all sectors, employment at exporting units fell by a sharp 1.67 lakh between April and June. Non-exporting units in all but three sectors (Textiles, Transport and Handlooms) saw total employment increase by 35,000.

Some sectors did see a recovery of sorts, though they preferred hiring contract workers over full-timers. The Handloom/Powerloom sector created 49,000 new jobs in the quarter, followed by Automobiles (23,000 new jobs) and Leather (7,000). Overall, contract workers’ employment went up by 0.4 lakh, while 1.71 lakh regular jobs were lost.

... contd.