No jobs in manufacturing

NEW DELHI: While corporate India is bullish on the prospects of higher industrial output and economic growth, no new jobs are being created on the shopfloor, according to Ficci''s "business confidence survey" for Q2 2003-04.
Ficci''s survey of 564 firms, representing a wide range of service and manufacturing industry, found that employers are not willing to add jobs because of the absence of ''hire and fire'' policy.
"Fresh hiring remains elusive. Companies are willing to buy new machines rather create fresh employment because of archaic labour laws," says Amit Mitra, secretary general Ficci.
As much as 68 per cent of the respondents plan to continue to grow with the existing employment force and a mere 17 per cent admitted about adding new jobs.
Mitra attributed this to rigid labour laws and excess capacity that was already present in the system. "Employment is not picking up as companies forsee demand at this moment for two years. They do not want to employ workforce permanently." "We need to hasten labour reforms."
The study noted that a large number of companies use capital-intensive technology and outsource many of their activities instead of increasing their labour force.
Unlike US, there is no quarterly or monthly mechanism to assess measurement of jobs added or taken away by the industry.
The overall business confidence index jumped by 6.9 per cent to 76.2% in October 2003. While corporate profits were high, there was no significant increase in investment.
For the first time, the performance of heavy industry improved and service sector growth was flat.