Hiring outlook for real estate & construction sector worst among peers
The construction and real estate sector is set to be the worst job creator in the April-September period, with overall hiring outlook dropping by eight percentage points, according to a survey by staffing firm TeamLease.
An eight percentage point drop in hiring sentiment would lead to a job growth of just 4.83%, the lowest among all the 16 sectors surveyed.
The employment outlook for the sector fell to 70% for the April-September period, from 78% in the October 2016 to March 2017 period.
“Construction & real estate – worst hit due to demonetization – has sentiment plunging to a new low,” said the report.
The report expects the sector to go through another tough economic climate as the goods and services tax (GST) comes into effect from July 1.
“Accordingly, job creation would be put off over the next six months,” it added.
The overall hiring outlook across sectors for the April to September period has also dropped by 6% to 89%.
The construction and real estate sector has been worst impacted due to the government’s demonetisation policy, which was aimed at removing the black money from the system and moving to a more cashless economy.
This has severely impacted home sales and launches, bringing the entire sector to a standstill as the builders and home buyers wait for the real outcome of the policy initiative.
The real estate and construction sector is expected to generate 7.5 crore jobs by 2022 and emerge as the largest employer in the country, according to a report by KPMG India last year.