The Naukri Job Speak Index for the month of August 2016 stood at 1835, recording an increase of 10.2% in hiring activity over the same period last year. The jobs growth experienced some slowdown in July 2016 when it had clocked a virtually flat growth of 3% however August numbers restored the growth momentum.
V. Suresh, Chief Sales Officer, Naukri.com said, “As predicted earlier, the job market seems to sustain the momentum gained in the past few quarters. The August index is moving north primarily driven by growth in sectors viz., IT Services, BPO & BFSI. While bigger metropolitan cities continue to drive this growth, good to see the emerging markets showing signs of revival & we can expect this trend to continue in the coming quarters.”
The growth experienced in Aug 2016 was primarily driven by technology and financial industries. IT-Software jobs picked up again in Aug and grew 11% when compared to Aug 2015. BPO/ITES had an even more impressive month and registered a growth of 16% compared to last year.
Banking/Financial services experienced a massive YOY jobs growth of 42%, the Insurance industry also witnessed 49% growth in the same duration. On the other hand, infrastructure oriented industries saw either sluggish growth or in some cases jobs actually decreased when compared to last year. Construction/Engineering and Oil and Energy sectors saw jobs decrease by 8% and 17% in August 2016 when compared to the previous years Naukri Job Speak Index. Industrial Products/Heavy Machinery saw a very flat growth of 3%. Real Estate as an industry continues to see a slowdown and in August witnessed a 33% YOY reduction in jobs.
Growth in functional areas
As seen in Industry analysis, the functional areas most strongly associated with technology and financial industries lead the annual jobs growth in August 2016. IT-Software and ITES/BPO/KPO saw YOY jobs growth of 14% and 22%. Banking / Insurance grew at a staggering 38% while jobs in the Finance and Tax sector also saw a good growth of 11%.
Traditional functional areas like Sales and Marketing grew at a more almost 9% and 4% respectively. Both these functional areas had shown stronger growth in the earlier part of the financial year. The functional areas of Site Engineering / Project Management and Engineering Design / R&D which are typically associated with infrastructure sectors reflected the slowdown in their industries and saw jobs in August decrease by 21% and 17% respectively when compared to 2015. The functional area of Production / Maintenance managed to grow but at a very slow rate of 3%.
Large metropolitan cities experienced relatively flat YOY growth in August. Delhi, Mumbai and Bangalore saw annual growth measuring 6%, 2% and 5% respectively. Pune and Kolkata, by comparison, had comparatively better growth of 11% and 12% respectively.
Tier-II cities specifically Chandigarh, Baroda and Jaipur saw good growth by comparison.