Optimistic hiring outlook for Q4, though talent shortage continues: ManpowerGroup India
Employers across India predict a hiring rebound for Q4 according to the latest ManpowerGroup Employment Outlook Survey released today by ManpowerGroup India. The survey of 3046 employers indicates many companies are planning on increasing their headcounts before the end of the year, expecting pandemic restrictions to ease and demand for products and services to rise. Hiring intentions improved in all sectors quarter-over-quarter with Services, Manufacturing and Finance, Insurance and Real Estate sectors reporting some of the most optimistic Outlooks. Employers were also asked how difficult they are finding filling vacancies and nearly 90% reported at least some difficulty. The most popular strategies to overcome hiring challenges include offering training and skills development, offering more flexibility in work schedules, and location.
Employers in large organizations report the most optimistic outlooks with 48% intending to hire in the fourth quarter compared to 38% in companies with less than ten employees. Employers in the West report the strongest hiring intentions for Q4 followed by East, North and south.
- Employers predict hiring to bounce back: The strongest year-on-year improvements are reported in Services (51%), Manufacturing (43%) and Finance, Insurance and Real Estate (41%).
- Record hiring intentions reported in many countries: employers in one third of all 43 markets surveyed report their most optimistic outlooks in more than ten years ∙ Technical skills and compulsory training including compliance are a key focus for HR leaders: 76% have already invested/plan to invest in accelerated upskilling (6 weeks or less) in technical skills for employees as well as compulsory training including compliance.
- Barriers to upskilling: As more employers’ plan to upskill workers, knowledge or strategy on what areas to skill the workforce (21%), access to the right upskilling training partner (17%) and money (14%) were cited as the biggest barriers businesses faced.
“Corporate India is showing healthy signs of recovery and an overall positive sentiment is gripping the market. Many of the deep-rooted structural factors that have sustained Indian economy over the years like geopolitical stability, diversified economy, demography, etc, are likely to play a pivotal role in the new normal.” said Sandeep Gulati, Group Managing Director of ManpowerGroup India. “Vaccine rollouts gaining tremendous momentum with most of corporate India due for the second vaccine coupled with the onset of the festive season may be the probable cause of the spike in optimism. The intent into action, however, needs to be observed considering the fear of the third wave and the continued talent shortage that most industries are finding difficult to bridge.”
Hiring Plans by Region
Employers in all four regions expect to grow payrolls during the fourth quarter of 2021. The strongest hiring pace is anticipated in the West, where the Net Employment Outlook stands at +49%. Dynamic hiring activity is also forecast in the East and the North, with Outlooks of +45% and +43%, respectively, while the Outlook for the South is +37%. Hiring prospects strengthen in all four regions when compared with the previous quarter. Sharp increases of 44 and 40 percentage points are reported in the West and the East, respectively. In the North, the Outlook improves by 36 percentage points, while employers in the South report an increase of 31 percentage points.
Hiring Plans by Industry
An increase in payrolls is forecast for all seven industry sectors during the coming quarter. Services sector employers report the strongest hiring intentions with a Net Employment Outlook of +50%. Vigorous hiring activity is anticipated in the Manufacturing sector and the Finance, Insurance & Real Estate sector, with Outlooks of +43% and +42%, respectively. Mining & Construction sector employers expect a brisk hiring pace, reporting an Outlook of +34%, while the Outlook for the Wholesale & Retail Trade sector stands at +33%. In the Transportation & Utilities sector, employers forecast solid payroll gains with an Outlook of +28%, and the Public Administration & Education sector Outlook of +24% reflects healthy hiring plans.