The Indian labour market is indicating positive sentiments for the July-September quarter of this year and businesses in the IT industry continue to report the brightest hiring outlook, a new survey said on Tuesday.
According to the ManpowerGroup Employment Outlook Survey of nearly 3,020 employers, the labour market is indicating positive sentiments in the third quarter of 2023 despite news of layoffs and anticipated global economic slowdown.
As many as 49% of employers report higher intentions for hiring, while 13% do not expect to hire, leading to a seasonally adjusted net employment outlook of 36%.
When compared to the same period last year, hiring sentiments have declined by 15%, while there is a 6 percentage points growth when compared to the last quarter.
Globally, employers in all 41 countries anticipate a net positive hiring outlook, with Costa Rica topping the chart with a net employment outlook of 43%, followed by the Netherlands (39%) and Peru (38%) in the second and third positions, respectively.
India was ranked at the fifth place (36%) after Australia in the global list.
Most cautious outlooks were reported in Japan (14%) and Taiwan (15%), the survey said.
As per the survey, 84% of Indian employers are recruiting for ‘green jobs’ or roles requiring ‘green skills’.
Sector wise, companies in the IT, technology, telecom, communications and media reported hiring outlook of 47% and 89% of them are currently hiring for green jobs, followed by financials and real estate sector with 41% outlook and 85% focussed on green job hiring, the survey said.
“India is one of the significant IT talent hubs for tech companies across the globe. Coupled with that, is the government’s continuous reinforcement in the semiconductor industry, both of which is fortifying the IT sector as the dominant player for growth in the Indian job market,” Sandeep Gulati, managing director of ManpowerGroup India and Middle East, said.
Gulati further noted that “demand during the festival season is expected to fuel the overall economy which will largely impact the temp staffing industry as well as the gig economy positively.” As per the survey, employers in all four regions expect to grow payrolls during the third quarter of 2023.
The hiring pace is the most promising in the West with a 42% net employment outlook followed by North and South where it stood at 39% and 33%, respectively. In the East, the net employment outlook stood at 29%, it added.
Moreover, according to Foundit’s Insights Tracker, hiring activities have slowed down by 7% in May compared to the same month last year mainly due to companies adopting cautious approach to cut expenses on the back of economic slowdown.
However, despite the general decline, positive trends were seen in tier II cities like Ahmedabad and Jaipur.
The tracker indicated that hiring activity is declining across all industries, with a 4% month-over-month (MoM) decline.
The report noted that this decline can be attributed to several factors like economic slowdown, which has forced companies to cut expenses.
(With PTI inputs)
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