The fast-moving consumer goods and durables (FMCG/D) and retail sectors are expected to add 2.76 lakh new jobs in April-September FY20, as per the ‘Employment Outlook Report’ by staffing firm TeamLease Services.
As per the study, the retail sector alone would have a 2 percent increased employment outlook and create 1.66 lakh new jobs; while FMCG/D may see a 1 percent increase and add 1.10 lakh new jobs.
The survey covered 775 small, medium and large companies from 19 sectors across India and 85 businesses across global markets. It studied employment trends, attrition and gleaned information on hiring sentiments.
Exponential growth in the sectors coupled with the entry of foreign retail giants, expanded capacity and acquisition were key drivers for job growth, it said.
While Delhi and Bengaluru were the top job creators in retail; Mumbai with 14,770 new jobs and Delhi 10,800 new jobs are expected to lead in FMCG/D.
New food parks, capacity expansion, acquisition by existing players, regulatory changes like the ease of FDI in ‘cash and carry’, and single and multi-brand retail through automatic routes, are key aspects expected to push job creation, it said.
“Besides government interventions like the ease in FDI norms, domestic player expansion and increased domestic consumption will also bolster employment prospects. In fact, the job creation by retail and FMCD/ G will witness a 15.11 percent and 10.31 percent growth respectively,” said Mayur Saraswat, Head of Digital & IT at TeamLease Services.
Saraswat further stated that the retail sector alone will create 33,310 jobs for fresh graduates across cities. The sector employed 4.53 crore people H2FY19 and the job creation estimate in the H1FY20 is 1.66 lakh.
As per the TeamLease report, India’s retail market is expected to grow by 60 percent to reach Rs 70 trillion by 2020. This due to the entry of Walmart and IKEA, who are expected to invest around Rs 2.75 trillion and Rs 10,500 crore respectively.
Dabur also had an investment outlay of Rs 250-300 crore in FY19 for capacity expansion and for domestic acquisitions.
Employment in the FMCG and consumer durables sector rose to 90.1 lakh as of the H2FY19 (October-March), the estimate for H1FY20 is 1.10 lakh.
The study also analysed attrition trends across sectors. As per the report, both FMCG and retail saw a significant increase in attrition in April- September FY19, as compared to October-March FY19. In H1FY20, attrition in retail was 19.82 percent and FMCG/Durables was 16.03 percent.