Key sectors of the Indian economy shed half a million jobs in the final three months of last year as the global slowdown took its toll on one of the world’s fastest growing big economies.

A survey of employment across seven sectors by the Ministry of Labour showed job losses in mining, textiles, carmaking, transport, metals, gems and jewellery and back office process outsourcing. The gems and jewellery sector, usually a strong export performer, was the hardest hit with a total fall of 9 per cent.

Employment of contract workers in the motor industry alone fell 12.5 per cent during the period as demand slowed and the liquidity crisis shortcircuited demand in the global economy. But the report showed that the gems and jewellery sector, a usually strong export performer, was the hardest hit with a total fall of 9 per cent.

Many additional jobs among contract and temporary staff, particularly in textiles, are likely to have gone unrecorded. Workers in many industries are being encouraged to take pay cuts and work longer hours to save their jobs.