Startups have over the years become a strong alternative to the traditional routes of employment. Despite the volatility of the startup ecosystem, many are slowly becoming crucial in providing employment to an increasing number of people within India’s workforce.
And this trend is on the rise. In a recent report by jobs site Indeed has revealed the four giants within the Indian startup ecosystem - Sanpdeal, PayTM, ShopClues, and Flipkart, make up for about 90 percent of job postings.
In addition to that, more than half of all job postings by top Indian startups with a valuation of over USD 1 billion are for fresh graduates. This comes as welcome news for fresh graduates in India.
Indeed India Managing Director Sashi Kumar said in the press release "Indeed's latest study reveals that more than half (57 percent) of all job postings by unicorns are for fresh graduates. This is encouraging for millions of young freshers looking to jumpstart their careers with young companies, and being a part of the exciting startup ecosystem."
Although the study is based on the number of job postings across a period of a year, it comes as a healthy sign as many within the startup e-commerce sector have been facing a troubling few months.
The Indeed report also said that companies like Snapdeal, ShopClues, and Flipkart are expected to experience a boom in business.
- The study included an analysis of job postings from Flipkart, Hike Messenger, InMobi, Mu Sigma, Ola, Paytm, ShopClues, Snapdeal, RenewPower and Zomato, which were identified as the top Indian startups valued at over $1 Bn.
- Snapdeal topped the chart in terms of percentage of total job postings at 53 percent, followed by PayTM at 23 percent, ShopClues (11 percent), Flipkart (4 percent), Zomato (4 percent), Ola Cabs (3 percent) and InMobi (2 percent) among others.
- The top four firms in terms of hiring together make up 90.57% of all jobs posted
- The region that has witnessed the maximum number of job postings from these companies in Delhi NCR. With an overwhelming majority of 83%, Delhi/ NCR also witnesses the maximum proportion of part-time or flexible jobs.
Snapdeal being in the top of the job posting chart comes as a surprise as the company in recent times has been in the middle of several take over claims. Other than the e-commerce companies, digital service providers like PayTM and Zomato are also rising as a result of the government's demonetization drive and push for cashless transactions, and the increasing mobile literacy.
Kumar added in a press release, “that their initial study on job flexibility also indicated a trend toward contractual hiring in these firms. He said that this indicates toward the new age job seeker's desire to create a work-life balance.”
But this trend isn’t just limited to Indian tech start-ups. According to news reports companies like Amazon is on a hiring spree in India and the e-commerce company is looking to get at least 1,000 people onboard.
Amazon India is mostly looking for software professionals and employees who will fit the bill in research and development for the company's different divisions. Positions are open for research scientists, data analytics, natural language processing (NLP), artificial intelligence machine learning (AIML) and Android developers.
Vacancies are in different departments such as Amazon.com, Amazon.in, the devices business, and the cloud computing division Amazon Web Services (AWS). "The numbers are mind-boggling. We are looking at a fully functional tech organization in India and are hiring varied skills across several job families. India is a big focus area for talent globally," Dale Vaz, director of software development at Amazon India added in a report to Times of India.
According to Morgan Stanley, Indian e-commerce market is expected to grow at 30 percent a year and attain a valuation worth USD 200 billion by 2026. It is crucial that this growth has a positive impact on the jobs market. The report also explained that India had 60 million online shoppers in 2016, which is 14% of the internet user base in the country. This will rise to over 50% by 2026.
These are helpful signs within the Indian job markets. With traditional job-creating industries like IT and banking undergoing significant shifts in their employment potential, start-ups rising to fill the gap helps create a buffer. But it’s necessary for many such unicorns to sustain such growth. The markets would have to watch to see whether this surge in job postings actually transfers into a substantial shift in the job markets in the long run.