Second and third tier cities have recorded 61.8% of total jobs in 2011, said a report released by Associated Chambers of Commerce and Industry (ASSOCHAM).
Almost 1,89,756 jobs were generated in Pune, Bhubaneshwar, Chandigarh, Lucknow and Surat during last one year. Allahabad, Udaipur, Agra, Ajmer, Kota and Meerut are the major tier III cities which showed a significant growth in job placements.
During 2010-11, tier III cities showed a growth of 23% on account of 1,50,391 jobs created and 2,53,702 jobs were created in tier II cities recording a growth of 38.8% in 2010-11.
Industry players believe that the growth is tremendous in sectors like IT, education, retail and banking. "India is giving the youth many opportunities to explore more avenues. Lack of excellent infrastructure is the only constraint. We expect the growth to be somewhere between 10-15% in the next two years for tier II and tier III cities. With GDP growth predicted at 8% over this decade, India is set to reap the benefits of rapid development," said Yogesh Bansal, Founder and CEO, ApnaCircle.com, a business and career networking site.
"Most of the companies consider these cities as catchment areas. Primarily growth can be attributed to lack of consistent employees in the metros and affordability. The job scenario has been far better than what it was last year. Although, phenomenal demand-supply gap still exists which will be rectified over the coming years," said V. Suresh, executive vice president, Naukri.com.
The growing new age ventures like e-commerce are seeping into tier II and III cities, due to its cost effectiveness for macro economic factors. Hence, they are creating employment opportunities in these cities to fuel expansion, as employment from such cities is highly cost effective. Companies have gradually started rebuilding their staff strength and gearing up for an optimistic FY11-12 with an aim to exploit the potential of "India's next destination cities."
Published on 26 June 2011.
