THE net employment outlook is expected to increase to 95 per cent, (April– September 2018) as compared to 91 per cent for the preceding half-year, October-March 2017-18, as per the latest Employment Outlook Report (HY1-2018-19) by TeamLease Services, India’s largest staffing company.
The biannual report, which was launched recently, looks at providing an overview of the hiring and job growth sentiments for the period April – September 2018. The increase in GDP and optimistic economic growth is being attributed to the positive hiring outlook.
The report surveys 695 small, medium and large companies across 16 sectors in eight cities to understand the hiring sentiments. According to the report, eight out of sixteen sectors surveyed have indicated positive hiring sentiments with an overall positive sentiment. Majority cities, five out of eight, have shown positive outlook towards hiring and the medium-size businesses were most optimistic (five per cent improvement over the past half-year) towards the hiring sentiment.
The Knowledge Process Outsourcing (KPO) sector will be the biggest gainer with four per cent increase in the hiring sentiments, over the past half-year, across the employers surveyed. Some of the other top sectors with incremental positive hiring outlook were E-commerce & Technology startups (+three per cent), Financial Services (+three per cent), Media & Entertainment (+three per cent), Retail, BPO/ITeS (+two per cent), FMCG/D (+two per cent) and Construction & Real Estate (+two per cent). With four percentage drop, Agriculture & Agro Chemical and Telecommunications are the top laggards in the first two quarter of the year, followed by Healthcare and Pharmaceuticals (-two per cent), Education Services (-two per cent), Manufacturing, Engineering & Infrastructure (-two per cent) and Travel & hospitality (-one per cent).
KEY FINDINGS OF THE STUDY
- An acceleration in the job market as the Net Employment Outlook looks up significantly (+four points) to 95 per cent, (April– September 2018) as compared to 91 per cent for the preceding half-year (October-March 2017-18)
- The recovery is attributed to the hiring sentiment for Junior and mid level roles (+four per cent), Blue Collar roles (+five per cent) and Sales and Marketing profiles (+four per cent each)
- Medium-sized businesses (+five per cent) looking to hire in Metro and Tier-one cities (+three per cent). The outlook improves by a significant four per cent for large businesses and by three per cent for small businesses
- The outlook improves significantly in Mumbai (+four per cent) followed by Delhi (+three per cent) Bangalore, Hyderabad, and Pune (+one per cent each). While the sentiment is significantly gone below in Kolkata (-three per cent), Ahmedabad (-two per cent) and Chennai (-one per cent).
- The silver lining is a clutch of clusters that show promise for the HY
- KPO hiring in Sales (+five per cent) and Ahmedabad (+four per cent)
- E-commerce/Tech Start-ups hiring in Ahmedabad (+five ), Hyderabad, Bangalore and Kolkata (+four per cent each)
- Media & Entertainment in Bangalore (+five per cent) and Delhi, Hyderabad, and Pune (+four per cent each)
- Financial Services in Bangalore, Kolkata, and Pune (+four per cent each)
- Constructions & Real Estate in Ahmedabad and Chennai (+four per cent each)
- Five of the seven Functional Areas – Blue Collar (+five per cent), Sales (+four per cent), Marketing (+four per cent), Information Technology (+two per cent) and Engineering (+one per cent) – are sought after by employers. Office Services (-one per cent) and Human Resources (-two per cent) are associated with a drop in sentiment
- Manufacturing makes a smart recovery, although hiring sentiment in the sector remains slightly low (-two per cent, up from –five per cent during the previous HY). The pall of gloom projected in public discourse seems to be based more on hearsay than on hard facts
- The top three sectors (by city) in terms of employment outlook growth are –
- Mumbai: Financial Services (+four per cent), KPO, Construction & Real Estate, Media & constructions, EC&TS (+three per cent each)
- Delhi: Media & Entertainment and BPO/ITES (+four per cent each); Retail, Financial Services, Construction & Real Estate and KPO (+three per cent each)
- Bangalore: Financial Services (+four per cent) | Media & Entertainment (+four per cent) | E-commerce & Tech start-ups (+four per cent) | KPO, BPO/ITES, Retail and Telecommunications (+hree per cent each)
- Kolkata: Financial Services and E-commerce & Tech start-ups (+four per cent each) | Retail, Educational Services and KPO (+three per cent each)
- Chennai: Financial Services, Retail, Media & Entertainment and E-commerce & Tech start-ups (+three per cent)
- Pune: Media & Entertainment (+four per cent each) | Financial Services and Retail (+three per cent each)
- Hyderabad: E-commerce & Tech start-ups and Media & Entertainment (+four per cent) | KPO, Construction & Real estate, Financial Services and Retail (+three per cent each)
- Ahmedabad: E-commerce & Tech start-ups (+five per cent)| Constructions & Real Estate and KPO (+four per cent each)
Speaking about the report, Rituparna Chakraborty, co-founder & executive vice president, TeamLease Services, said, “Job market across the globe is going through its transition phase with advanced technological interventions making their way to our lives. Asia-Pacific region has the most positive net employment outlook (62 per cent) across global markets for the April-September, FY 19 as compared to October- March, FY 18. In fact, the positive hiring sentiment when benchmarked against global markets shows India to be ahead of the APAC (global leaders) by 33 percentages and ahead of Europe (global laggard) by 54 per cent. The overall positive sentiment is in alignment with the growth in GDP. ”
The report further highlights that Mumbai continues to top the list with four per cent growth in positive outlook with Delhi close behind with three per cent rise. Bangalore, Hyderabad, and Pune had a small incremental improvement in the outlook of one percentage. The in-depth analysis indicated positivity in Metro and Tier one cities with Tier two substantially improving over the half year.
Further, from a hierarchy perspective, junior and mid-level hiring is set to improve substantially with an increase in the hiring (+four). The entry level and senior level hiring have seen a modest improvement.
TeamLease Employment Outlook Report is a comprehensive study that brings forth the important employment and business trends that will play a significant role in determining how job creation and hiring pans out in India over the next six months. The report serves as a reference manual to corporate houses to understand the employment trend in the present market scenario at major cities across the country.