The growing focus on expanding the market presence coupled with the reforms like reduction in the corporate tax, and export policy seems to be having a positive impact on hiring sentiment states TeamLease Employment Outlook Report. According to the report, India will witness a 7.12% increase in job creation in the current half-year (October-March, 2019-20).
Detailed analysis of the hiring intent across sectors, geographies, and profiles, as per the report, though the net employment outlook is subdued in general, some of the industries have exhibited optimism similar to job creation. 7 out of the 19 sectors surveyed indicated an increase in net employment outlook.
Healthcare & Pharmaceuticals (+3%), Information Technology (+3%), E-commerce & Tech start-ups (+3%) Educational Services (+2%), KPO (+1%), Power & Energy (+1%) and Logistics (+1% each) are the sectors wherein corporates have expressed intent to hire in the coming months. From a geography point of view, with a 2% increase in hiring intent, tier 2 towns seem to the favorite of hiring managers indicating good times for talent in tier2 towns. The report also forecasts good days for Junior (+3%) and Senior level (+3%) talent as well.
GLOBAL TRENDS: Trade pacts being negotiated and rate cuts by central banks notwithstanding the global markets witnessed a drop in Net Employment Outlook for the forthcoming, October-March, 2019-20, HY.
Europe saw the most significant drop in Net Employment Outlook [-3%], followed by Africa and the Americas [-2% each]. Middle East [no change] and APAC [+1%] weathered the global headwinds and stayed strong.
INDIA: The gains in sentiment by 7 sectors, thanks to paradigm-altering economic reforms that included a more progressive corporate tax regime, strategic disinvestments, and labor reforms, was the silver lining as India’s Net Employment Outlook dropped 4% to 91%, for the October-March, 2019-20 HY. The GDP growth forecast for Q2, 2019-20 seems to have contributed to this drop.
Net new job creation: Delhi, Bangalore, Chennai and Mumbai led the job creation scene for the April–September 2019-20 HY.
Delhi: Logistics [28,650 new jobs], Bangalore: Educational Services [24,380 new jobs] Chennai and Mumbai: Fast Moving Consumer Goods & Durables [17,400 and 17,100 respectively.
Commenting on the report, Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services, said, “Though the lowering of the GDP growth projection seems to have dampened the net employment outlook in some of the sectors, the job creation across sectors is on a growth trajectory. In fact, 8 out of the 19 sectors are expected to witness a double-digit rise in job creation. Logistics and educational services alone will add 14.36% more jobs during the period October-March, 2019-20 indicting the dip in the net employment outlook to be more of a passing phase.”
An in-depth drill down on the different aspects impacting the employment eco-system, as per the report 14 out of the 19 sectors reviewed indicated a significant to marginal drop in attrition during the period April-September, 2019-20 indicating that the job created by these sectors are not necessary to fill the vacant positions.