The effect of loosening of restrictions of COVID-19 is clearly visible on the service sector. Due to the increase in demand, there has been a growth in the service sector of the country even in September. Although it has been less since August. The PMI of the service sector stood at 55.2 in September, while it stood at 56.7 in August. The growth recorded in the service sector in September was the second fastest growth rate since February.
Extra hiring in the service sector in September
In view of the increasing demand in the service sector, companies have done additional hiring in September. In terms of hiring, this month has been very important as it picked up for the first time after nine consecutive months of job cuts. Output has increased for the second consecutive month in the service sector. In terms of PMI, a score above 50 indicates an increase in activity in the sector, while a score below 50 indicates a decline. IHS Markit’s economics associate director Poliana de Lima says that Indian companies have benefited from the reduction of corona infection and the loosening of restrictions. The market is showing improvement. Companies are getting new work and business.
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Speed of service sector is very important for employment
Actually, the growth in the service sector is a matter of relief, so this sector has suffered the most from Corona. In industries like tour-travel, hospitality, hotel, aviation, a large number of people have become unemployed due to a huge decrease in demand. Due to restrictions, its hiring was decreasing in comparison to the manufacturing sector. Lack of demand in this sector was a big hurdle in hiring. The share of the service sector in the Indian economy has increased to 54 percent. In such a situation, this sector is very important in terms of employment.