In the decade of the so-called jobless growth in the 1990s, the percentage of ‘managers and directors’ employed, grew by a massive 44% in the manufacturing sector.
That is the fourth fastest employment growth rate among all occupation groups including production workers, wholesale and retail trade, construction workers, labourers and transport equipment workers. The amazing rise is not a statistical freak — the effect of a low base showing up as a large percentage rise.
Instead, according to a study on employment trends by Teamlease, the number of working proprietors, directors and managers rose by 4.4m out of 58.8m jobs created in the six year period from 1993-’94 to 1999-’00.
The rise overshadowed the employment growth rates in other sectors like production and related workers, where only 2.5m jobs were created, or clerical workers whose number rose by only 1.9m — a rise of only 23% in the same period.
Commenting on the trend, Laveesh Bhandari, the leader of the team that produced the report said, a reason for this could be that for the same output now, fewer lower level staff is now required. “With increase in computerisation and efficient technologies, more managers and directors are required than production staff,” he added.
Incidentally, the employment growth rate for production workers as shown in the report, is consistent with that of the non-agricultural sector. But the employment growth rate for managers and directors isn’t. “The average annual employment growth for the non-agricultural sector is 7% whereas that of production workers is 6% as opposed to that of managers and directors which comes out to be about 10%,” says Dr Bhide of NCAER.
According to him, the reason for this could be that the level of employment for managerial staff in the early nineties was low to begin with. “Another reason could be the increase in size of firms and greater complexity in business,” he added.
In the same period, while production workers recorded an employment growth rate of 31%, employment for electronic workers and building workers grew by 25% and 24%, respectively.
That is the fourth fastest employment growth rate among all occupation groups including production workers, wholesale and retail trade, construction workers, labourers and transport equipment workers. The amazing rise is not a statistical freak — the effect of a low base showing up as a large percentage rise.
Instead, according to a study on employment trends by Teamlease, the number of working proprietors, directors and managers rose by 4.4m out of 58.8m jobs created in the six year period from 1993-’94 to 1999-’00.
The rise overshadowed the employment growth rates in other sectors like production and related workers, where only 2.5m jobs were created, or clerical workers whose number rose by only 1.9m — a rise of only 23% in the same period.
Commenting on the trend, Laveesh Bhandari, the leader of the team that produced the report said, a reason for this could be that for the same output now, fewer lower level staff is now required. “With increase in computerisation and efficient technologies, more managers and directors are required than production staff,” he added.
Incidentally, the employment growth rate for production workers as shown in the report, is consistent with that of the non-agricultural sector. But the employment growth rate for managers and directors isn’t. “The average annual employment growth for the non-agricultural sector is 7% whereas that of production workers is 6% as opposed to that of managers and directors which comes out to be about 10%,” says Dr Bhide of NCAER.
According to him, the reason for this could be that the level of employment for managerial staff in the early nineties was low to begin with. “Another reason could be the increase in size of firms and greater complexity in business,” he added.
In the same period, while production workers recorded an employment growth rate of 31%, employment for electronic workers and building workers grew by 25% and 24%, respectively.