Hiring intent among Indian companies will grow in July-September quarter across cities and across verticals. And sectors like IT, ecommerce, education, and FMCG will drive the positive employment sentiment during this period, staffing and human resource firm TeamLease Services said on 6 July.
The overall intent to hire shall witness a 7 percentage increase from 54 percent to 61 percent. But the the quarterly outlook for the Q2 showed that among the sectors, IT firms have shown a 98 percent intent to hire during July-Sept, followed by educational services (91 percent), ecommerce (89 percent), healthcare and pharma (88 percent), telecom (84 percent) and FMCG (73 percent).
Other sectors, which have shown a grater appetite than the national average includes essential retail, logistics, financial services, KPO, and agrochemical segments, the quarterly employment projection survey showed.
Along with a strong hiring intent, the attrition was high in sectors like IT (22.03 percent), educational services (13.11 percent), healthcare and pharma (12.25 percent) and ecommerce (11.04 percent) during April-June 2022.
“Overall, the ecosystem is taking a progressive turn, with more organizations projecting the intent to increase their hiring. This optimism is largely influenced by increased public investment in PLI schemes, an advanced INR 2.65 lakh crore stimulus package by the government (in the past couple of years) to generate job opportunities and provide liquidity to sectors like tourism, aviation and housing. With these factors, increase in hiring sentiment is not only imminent but over the next few quarters, it is likely to cross the 70% mark as well,” said Rituparna Chakraborty, executive director and co-founder of TeamLease Services.
“On the other hand, while few organizations may occasionally stall hiring due to the rise in COVID cases or possible restrictions due to COVID, there will not be any major recalibration in the overall hiring strategy”, she claimed.
The positive outlook comes amid thousands of employees losing jobs in the start up space. More than 12,000 employees working in startups were let go in 2022 so far.
Metro and tier one cities top the intent to hire, witnessing an increase of 6 percentage points for the forthcoming quarter (rising to 89%) compared to the previous quarter.
Tier-2 cities witness a higher growth of 7 percentage points and the intent to hire there has gone up to 62 percent in Q2, Teamlease said.
Tier-3 cities show an increase of 3 percentage points, rising from 34 percent to 37 percent. The rural geography, likewise, shows a nominal rise of 2 percentage points, the survey said.
Overall, from a city specific perspective, companies in Bangalore have shown a highest hiring intent of 95 percent, followed by Chennai (87 percent) and Mumbai (83 percent), Delhi (78 percent) and Hyderabad (75 percent).
Sectorally speaking, Delhi (72 percent) followed by Mumbai (59 percent) and Chennai (55 percent) are the most promising cities in the manufacturing sector. From a services sector perspective, the top cities are Bangalore (97 percent) Mumbai (81 percent), and Delhi (68 percent).
While the quarter on quarter growth percentage is highest in engineering and marketing, in absolute numbers, IT and Sales remain the most in-demand job functions.
With employers stepping up their plans to hire for the other functions, the forthcoming quarter is set to see increased levels of hiring for engineering, marketing and blue collar, TeamLease said.
The survey says engineering, and marketing roles show sizable increase in the hiring intent in Q2. Engineering roles projected to witness a 13 percent increase, followed by a 10 percent growth in marketing roles quarter on quarter.
Sales and IT see an increase in hiring intent by 8 percent each. Blue collar job roles show a 7 percent rise in Q2 over the previous quarter, the survey underlined.