According to a survey by HR consultancy firm Ma Foi, employment generation by the hospitality sector will be the largest - an addition of 430,000 jobs, from 6.16 million in 2007 to 6.59 million in 2008. This will be followed by the health sector, which will offer job opportunities to 290,000 more people, from 3.32 million in 2007 to 3.61 million in 2008.

The education sector, including training and consultancy, however, is expected to add 166,000 employees. In 2007, the sector had employed 10.2 million people, which could go up to 10.4 million people this year.

However, the IT and ITeS sector, so far considered the largest job provider, is expected to add only 130,000 jobs, taking the employee strength to 1.93 million in 2008 from 1.8 million last year.

The survey, which captures employment trend in 22 different sectors, highlights that the organised sector is likely to create one million additional jobs in 2008. This would take the total number of jobs in the sector to 34.62 million in 2008, a 3.05 per cent increase over the 33.63 million last year.

"The trend is suggesting a slight dip in new job creations as sectors like textiles and IT have been hit by the rupee appreciation," said K Pandia Rajan, managing director, Ma Foi Management Consultants.

"Last year, there was a 3.26 per cent increase in the number of jobs but it toned down to 3.05 per cent for 2008. Major culprits for the stagnation have been the textile and IT and ITeS sectors, which could not generate enough jobs due to the currency appreciation," added Rajan.

Rajan highlighted that mid-size and large IT and ITeS companies recruit in large numbers from engineering campuses in tier-III cities, with around 50 per cent students from these institutes getting placement offers. But due to the rupee rise, the percentage may drop to 35.

Meanwhile, the textile and clothing sector too shares a similar concern. With an employment base of 1.5 million jobs, this sector is projected to generate only about 17,000 jobs this year.

Food and beverages, minerals and metal products, and manufacturing of furniture are other sectors which recorded less job additions.

"The production and service sector firms with high growth potential are constrained by the quality of the workforce. Raising employability levels has therefore been an objective not just for the workforce looking for jobs, but also for the companies who have initiated partnerships with private and public institutes to build up relevant skills and training. The education sector has also seen high employment growth for these reasons," added Rajan.