Chennai: Fast moving consumer goods and durables (FMCG&D) and retail sectors together are likely to add 2.76 lakh new jobs during the first half of the current financial year, said a report.
The creation of employment will follow the entry of foreign retail giants, said the ‘Employment Outlook’ report from TeamLease Services for the April-September period.
The retail sector will witness a two per cent increase in net employment outlook, resulting in the addition of 1.66 lakh new jobs, while (FMCG&D) will see a one per cent growth, adding 1.10 lakh new jobs, said the report.
With 27,560 new jobs Delhi will top the list in retail followed by Bengaluru with at 22,770 new jobs. Mumbai with 14,770 new jobs and Delhi with 10,800 new jobs will be the leaders for FMCG&D, it said.
Key drivers of employment, the report said, would be exponential growth witnessed by the sector, entry of foreign retail giants, capacity expansion and acquisitions.
Setting up of food parks, capacity expansion, acquisitions by the existing players, regulatory changes like easing the foreign direct investments (FDI) in ‘cash and carry’, single and multi-brand retail through automatic routes are the key aspects that will push job creation by the sector, it added.
It said both FMCG and retail experienced a significant increase in attrition in April-September 2018-19, compared to October-March 2018-19. Attrition in retail is seen at a 19.82 per cent and FMCG&D at 16.03 per cent respectively.
“Apart from government interventions like easing of FDI norms, expansions by the domestic players, the increase in domestic consumption will also positively impact and bolster job creation by these sectors,” head – Digital and IT, Teamlease Services, Mayur Saraswat, said.
Job creation by retail and FMCG&D sectors will witness a 15.11 per cent and 10.31 per cent growth respectively, he added.
The report was done across 19 sectors and 14 geographies, surveying 775 enterprises in India and 85 businesses across the globe.