Despite the continued, significant, growth in GDP the job market for the forthcoming half year sees slight drop in hiring sentiment, according to staffing company TeamLease Services.
Job growth sentiments for the period October-March 2018-19 are expected to decrease by 3 per cent points compared to the preceding half-year (April– Sept 2018).
According to the report, eight out of 19 sectors surveyed report increase in the Net Employment Outlook, 7 others report drop in their outlook, while one sector reports no change for the Oct-March 2018-19 HY. Out of the 14 cities surveyed, the outlook has improved in four cities and declined in four cities. The report has surveyed 750 employers and 2,500 employees of small, medium and large companies across 19 sectors and 14 cities to understand the hiring sentiments in the country.
Across hierarchy, mid level hiring will increase by 3 per cent while there is a drop in entry level hiring by 5 per cent, junior level by 3 per cent and senior level by 4 per cent. Moreover, medium-sized businesses will bear the brunt of the prevailing sentiment with a 3 per cent drop while small and large businesses report a 1 per cent increase in sentiment each.
In India, the Power and Energy sector will be the biggest gainer with 4 per cent increase in the hiring sentiments, over the past half-year. Some of the other top sectors with incremental positive hiring outlook are Financial Services, Media & Entertainment , Educational Services, Healthcare & Pharmaceuticals, Ecommerce & Tech Start-ups, Manufacturing, Engineering & Infrastructure and Travel & Hospitality. With 3 per cent drop, Construction & Real Estate, Retail and Telecommunications are the top laggards in the second half of the year, followed by Agriculture & Agrochemicals, BPO/ITeS, IT and FMCG. Power & Energy sector will add 33,100 new jobs, financial services will add 44,650 and media & entertainment will add 46,300 new jobs in H2 FY18-19. For the cities surveyed in the report Mumbai will add the highest number of jobs 1.66 lakh following by Delhi (1.55 lakh), Bangalore (1.52 lakh) and Hyderabad (96,000).
“Despite the growing GDP there has been a slight dip in the employment outlook in the next half year. However, sectors such as Power and Energy (+4%) and Financial Services (+3%) which have shown a surge in the employment outlook are a relief. In fact, tier-3 cities which have shown improvement in the employment outlook is a testament that new avenues and job markets are opening up across India and therefore many opportunities will follow in the next half year. We are glad to report that the hiring of fresh graduates across sectors and cities is likely to be nearly 16.3% of all net new jobs created during the April-Sept 2018-19 half year. These factors will definitely boost the confidence of the job seekers even though there is a minor plunge in the outlook,” Rituparna Chakraborty, co-founder & executive vice president, TeamLease Services said.
The report also highlights the attrition rate for from April-Sept 2018-19. Eight of the 19 sectors witnessed significantly higher attrition during the last HY (April-Sept 2018-19) as compared with the last FY (April-March 2017-18).