Job scene looks up in Nov, Q3 hiring outlook upbeat

Tags: News
After a long lull, things seem to have started looking up on the employment front. India has emerged as one of the most optimistic nations globally in terms of hiring plans for the next quarter and the numbers for November are promising.

An employment outlook survey by ManpowerGroup finds that Indian employers are anticipating brisk hiring in January-March, especially in mining, construction and services sectors.

India, where 5,006 employers were surveyed, is the second-most optimistic nation after Taiwan. On India’s heels are New Zealand, Colombia and Singapore. Italy, Ireland, Finland, Spain, Slovakia and Belgium have a negative outlook of hiring. In 34 of 42 nations surveyed, firms expect to hike payrolls in the next three months. In this quarter a year ago, 29 nations showed optimism.

“India’s Q1 hiring pace is expected to remain robust, especially in mining and construction where jobseekers are expected to benefit from efforts to improve infrastructure across the country,” said A G Rao, group MD of ManpowerGroup India.

The hiring pace is also expected to remain brisk in the services sector, where IT talent continues to be aggressively recruited by both national and multinational firms. Naukri Job Speak Index that tracks monthly hiring activities online also finds that hiring activity in the past two months points to a better hiring outlook for 2014.

“Global companies are now looking at India as a core growth market since India has morphed into a talent powerhouse with the emergence of new technologies and business models. We are bullish on hiring in India next year,” said Ambarish Raghuvanshi, president of finance of the Info Edge (India) group that owns naukri.com. “The Indian economy is on the cusp of change since the general elections are round the corner,” he said.

The index found moderate increase in hiring activity in November. There was 1 per cent growth over October. However, in the IT software segment, hiring growth was swifter at 10 per cent. Hiring activity was 16 per cent better than in November last year. “We started seeing some green shoots in October-December, especially in IT. Social media, analytics and cloud have been driving growth in the technology sector. However, we had predicted moderate job creation in 2013 of under 1 million, against 1 to 1.2 million jobs created in each of the past four years,” said K Pandiarajan, CEO of MaFoi Strategic Consultants.

The oil and gas and banking sectors are also seeing positive growth in hiring, with the index rising by 6 per cent and 4 per cent, respectively. But BPO and automobiles slowed by 17 per cent and 9 per cent month on month. Among the metros, Bangalore and Chennai saw the index up by 7 per cent and 2 per cent, respectively. In

Delhi-NCR and Mumbai, it was down 2 per cent. Kolkata too saw a drop in hiring in the

second half, a TeamLease

report said.

The trend is likely to continue in the coming two quarters as well, according to Sangeeta Lala, senior vice-president of TeamLease. Aditya Narayan Mishra, staffing president at Randstad India, too looks forward for improvement in the second quarter of next year.

“There are several policy decisions which need to be cleared and by the second and third quarters, more clarity on them can be expected. Meanwhile, healthcare, hospitality and pharmaceuticals have seen some action,” he said.

“Hiring intentions are strong compared with the previous quarter. We see a significantly higher proportion of employers who are sure of their hiring plans for the next quarter. We see better opportunities for job seekers across sectors. Overall, hiring activity is expected to be good and the infrastructure and retail sectors should lead in hirings in the days to come. The banking and financial services sector is still under pressure and no big hiring is likely in this space anytime soon," said Rajesh Kumar, CEO, MyHiringClub.com.

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