An ASSOCHAM-Thought Arbitrage Research Institute (TARI) paper has revealed that the IT and ITeS sector has reached a plateau in new job creation. This sector is forecasted to add only one million jobs in the next 5 years. Real employment opportunities are seen to be in less technical industries, such as building, construction and real estate. Other high employment potentials are in retail as well as in the transportation and logistics sectors, the paper noted.

The IT and ITeS, which are under pressure at present, is seen to grow at a lesser pace in terms of job creation. On the employment base of 3.3 million in 2013, the much-touted sector had an incremental human resource requirement of 2.2 million by 2022, of which about one million have been added in the last three to four years.

1 million-job potential

The potential for new jobs in the sector is about one million over the next 5 years. "In any case, the IT and ITeS is going through fresh challenges of technology upgradation, automation, visa restrictions in the US, and increasing skill gaps. Thus, as a country which requires at least 15 milion to 20 million jobs a year, we need to look quite broader and at those areas which expand not only in the export market but also within the country," said ASSOCHAM Secretary General D S Rawat.

The report also revealed that the retail sector is the top contributor to the economy, although it is dominated by "unorganised" players. The sector is forecast to create an incremental level of about 10 million to 12 million new jobs over the next 5 years. The paper also highlighted the need for skills upgrade in all sectors of the economy that are largely focussed on domestic demand.