News: Job growth in energy, IT, and manufacturing; 12% drop in freshers' hiring: Survey


Job growth in energy, IT, and manufacturing; 12% drop in freshers' hiring: Survey

The survey revealed that job hiring trends in India continued to show dynamism month-on-month, building on the positive momentum observed in January.
Job growth in energy, IT, and manufacturing; 12% drop in freshers' hiring: Survey

While year-on-year (YoY) data shows an 8% decline, there's been a 3% month-on-month (MoM) growth in hiring activity across sectors. The index climbed steadily from 262 to 269 in the first two months of 2024, signalling a positive trend in employment opportunities, revealed foundit in its latest findings on hiring trends for February 2024.  

Month-on-month, job hiring trends in India remained dynamic, building on the positive momentum seen in January. Industries like Oil/Gas/Petroleum, Power, and IT-Hardware and Software demonstrated robust performance, with each witnessing a 7% increase in hiring. 

The government's focus on renewable energy and electrification projects has significantly contributed to the boost in recruitment within the power sector. In contrast, the IT-Hardware and Software sector's recovery from last month's -1% decline to a 7% increase reflects a resurgence in demand for skilled professionals in these domains, propelled by technological advancements. 

The uptick in Production and Manufacturing (6%) indicates a robust rebound, partly driven by the impact of production-linked incentive (PLI) schemes, with a significant outlay of INR 1.97 lakh crore. 

These schemes have stimulated job creation within the Manufacturing sector, contributing to a noteworthy improvement from the stagnant growth observed last month. Travel & Tourism witnessed a 4% month-on-month growth. Although seasonal fluctuations led to a slight decrease from January's remarkable surge, the sector still experienced one of the highest growth rates compared to others. 

Telecom/ISP (2%) and Home Appliances (2%) transitioned from stagnation to a modest increase this month. The expansion of 5G services necessitated an additional workforce for various functions within the telecom sector, while heightened consumer demand influenced hiring in the home appliances segment. 

The BPO/ITES sector experienced a significant 4% decline in February 2024, in contrast to its growth in the previous month. This downturn suggests that companies in this sector are reassessing their operational strategies, including workforce requirements, to better align with changing market demands and automation trends. 

Meanwhile, Office Equipment/Automation saw a steep decrease of 12%, reflecting the increasing adoption of digital alternatives and cloud-based solutions. In other sectors, Media & Entertainment, FMCG, and Chemicals witnessed a slight uptick of 3%, indicating a gradual return to normalcy. 

However, sectors like Advertising, Banking/Finance, and Healthcare experienced declines of -2% to -3%, signaling a cautious approach to hiring in these areas. Coimbatore takes the lead with a 4% surge, while Bangalore maintains its dominance in the tech sector. The job hiring landscape across major Indian cities reveals a mix of growth, stagnation, and decline compared to the previous month. 

Coimbatore stands out with a strong 4% increase, driven by its focus on manufacturing and the growing textile sector. Bangalore continues its upward trend with a 3% rise, fueled by the ongoing demand for tech professionals. 

Cities like Pune, Ahmedabad, and Delhi-NCR show moderate growth of 2%, reflecting their diverse economies and industrial presence. However, major metros like Mumbai and Chennai see slower growth at 1%, possibly due to higher living costs and stiff competition. Hyderabad and Baroda report stagnant growth at 0%, while Kolkata, Chandigarh, and Kochi experience declining growth rates of -2%, -3%, and -3%, respectively. 

Roles in senior management have seen a positive upturn, signaling a renewed focus on leadership positions. Hospitality and Travel roles have witnessed a remarkable 8% surge in hiring, indicating a strong recovery from previous stagnation, likely driven by the gradual rebound of the travel industry. 

Similarly, HR and Administration roles saw a notable 7% increase in February, reflecting heightened attention to talent management strategies amid evolving market dynamics. In contrast, legal roles experienced a significant downturn, dropping from 7% growth to -7% in February, suggesting a potential slowdown in legal hiring needs or shifts in demand for legal services. 

Marketing and Communications roles also saw a notable decrease, falling from 7% growth to -8% in February, possibly due to budget constraints affecting hiring decisions. Customer Service (-4%), Engineering/Production (-4%), and Purchase/Logistics/Supply Chain (-6%) experienced sharper declines, indicating sectoral shifts towards automation or restructuring. Finance & Accounts and Healthcare roles remained stagnant with 1% growth, reflecting cautious hiring practices within these sectors. 

Delhi-NCR Takes the Lead in Hiring, IT Graduates' Demand Declines In February 2024, the freshers' job market in India experienced a 12% decline in hiring compared to the previous year. However, there was a significant increase in applications, up by 24%, resulting in heightened competition, with approximately six applicants competing for each available position. 

Despite the overall decline, certain industries showed notable trends. The Technology sector, especially IT-Hardware & Software, remained dominant, although its share decreased from 23% to 17%. Healthcare emerged as a surprising growth sector, doubling its share from 5% to 10%, possibly due to increased healthcare needs. BPO/ITES and BFSI sectors retained stable shares at 12% and 9%, respectively.

Startups witnessed a significant decline in their role in entry-level hiring, contributing only 3% of jobs compared to 14% in the previous year, possibly due to funding challenges or strategic adjustments. Demand for Software, Hardware, and Telecom roles remained high, although slightly decreasing from 32% to 27%. Sales & Business Development roles saw a significant rise in demand, increasing from 13% to 21%.

Geographically, Delhi-NCR led with a 19% share of job postings, followed by Bangalore (13%) and Mumbai (10%). Other major cities maintained relatively stable shares. Changes in demand for qualifications were observed, with a decrease in demand for IT graduates from 19% to 13%, indicating potential saturation in the IT sector. Similarly, management graduates saw a slight decrease in demand from 11% to 10%.

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Topics: Recruitment, #HRCommunity, #Hiring, #Trends, #HRTech

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