TeamLease Services, the recruitment and human resources services company, in a recent report showcased hiring sentiments for India’s employment stakeholders for H2 FY24 (October 2023 to March 2024).
The ‘TeamLease’s Employment Outlook Report’ indicated a remarkable trend in incremental workforce expansion, with 79% of employers intending to maintain or increase their workforce in the second half of FY24.
With data from 1820 companies across 14 cities, the report offered a comprehensive analysis of anticipated employment trends across 22 industries, making it an indispensable resource for businesses, HR leaders, and policymakers.
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Key findings of the report;
Consumer and retail companies will see a resurgence in Q4 from muted demand in semi-urban and rural areas in the festive season in Q3. While the report carries positive sentiment for the financial services sector, it highlighted cautious moves from banks, NBFCs and Fintechs with increased regulatory pressure from the RBI on lending norms for riskier credits.
According to the report findings, H2 is projecting positive incremental hiring, including workforce expansion, new hiring, and replacement hiring. This surge in workforce expansion can be attributed to government policies and initiatives aimed at fortifying employment opportunities and cultivating a business-friendly environment.
Notably, India experienced a remarkable 7.8% surge in GDP during the first quarter of the fiscal year 2023-24 (Q1 FY24). This robust GDP growth underscores a potent economic rebound, driving the acceleration in incremental hiring across the nation, the report said.
According to the data, economic conditions significantly impact the employment environment, as cited by 69% of respondents. Furthermore, business growth or expansion is a significant factor, as mentioned by 53% of respondents.
As a result of the government and private sector encouragement of entrepreneurship, India is poised to witness an increase in employment opportunities, the report added.
Skill Challenge
According to 31% of respondents, skill shortages and mismatches between available skilled personnel and job requirements can have a significant impact on hiring. Additionally, 19% of respondents concur that technological advancements are a key factor in determining employment opportunities in India.
Another 15% of respondents believe that changes in policy, such as labour laws and regulations, taxation, investment incentives, industrial regularisations, and global trade dynamics, will significantly influence employment trends in India.
Another significant highlight of the report is that 67% of respondents anticipate robust business development during the October-March 2023-24 half-year period, reflecting India’s optimistic economic outlook. This optimism suggests the momentum in hiring is set to continue.
A striking 79% of the employers surveyed expect an increase in the workforce in their respective industries over the next six months to meet the surging demand. Both new hires, at 79%, and replacement hires, at 74%, are occurring rapidly, indicating a flourishing labour market in the country.
Regarding industry trends, the report said it is evident that Healthcare and Pharmaceuticals stand out with 86% workforce expansion. Electric Vehicles and Infrastructure follow closely behind at 85%.
New Hirings
Moreover, the top industries for new hiring include the Electric Vehicle and Infrastructure Sector at 88% and Healthcare and Pharmaceuticals at 87%. For replacement hiring, Power and Energy lead the way at 88%, followed by Fast Moving Consumer Durables at 85%, and Healthcare and Pharmaceuticals at 84%.
Kartik Narayan, CEO, staffing, TeamLease Services, said, “Despite a slower pace in Q3, this upward trend in employment isn’t merely about increasing headcounts; it’s a strategic move to leverage economic growth and take advantage of conducive policies, contributing significantly to the country’s economic resurgence.”
“As we navigate the evolving landscape, we have an opportunity to shape a brighter future for the workforce. We must continue to adapt, innovate, and invest in the skills and focus on diversity and inclusivity that will drive India’s growth in the coming months,” he added.
Balasubramanian A, VP & business head, TeamLease Services, said, “The upcoming job landscape in consumer-centric sectors such as healthcare and pharmaceuticals, Electric Vehicles (EV), and Infrastructure and Fast-Moving Consumer Durables (FMCD) reflects commendable growth. This surge in job aspects is driven by a collective demand for innovation, sustainability, and advancements in technology.”
“These sectors are at the vanguard of addressing societal needs, be it in delivering essential healthcare services, developing eco-friendly mobility solutions, or meeting evolving consumer preferences. Their forward-thinking approaches and adaptability to changing market dynamics pave the way for substantial job opportunities, marking a pivotal moment where industries align with the aspirations and necessities of the future,” Balasubramanian added.
City-wise Trends
When examining trends by city, the report highlighted specific locations where employment opportunities are thriving.
Bengaluru has the highest rate of incremental workforce expansion at 89%, followed by Chennai at 83% and Mumbai at 82%.
For new hires, Bengaluru maintains its prominence at 87%, with Mumbai at 86% and Chennai at 83%. In the category of replacement hiring, Mumbai leads with 82%, followed by Bengaluru at 78% and Chennai at 76%.
Tier-2 cities are not far behind as these cities are gaining business prominence and show high incremental workforce expansion in cities like Coimbatore, Gurgaon, Kochi, Nagpur, Chandigarh and Indore.
Regarding trends in different functional areas, the report underscored the significance of specific functions within the job market.
In workforce expansion, Human Resources, Marketing, and Information Technology emerge as the top functions with 71%, 70%, and 70%, respectively.
For new hires, the Human Resources function takes the lead with an impressive 92%, while Marketing follows closely at 87%.
For replacement hiring, the Information Technology function leads the way with 94%, with Human Resources close behind at 89%.
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