79% of employers expect an increase in the workforce in their respective industries over the next six months to meet the surging demand, according to a report by human resource staffing firm TeamLease.
Both new hires, at 79%, and replacement hires, at 74%, are occurring rapidly, indicating a flourishing labour market in the country, India's leading staffing company says in a report titled 'TeamLease's Employment Outlook Report'.
The report is based on data from 1,820 companies across 14 cities and offers anticipated employment trends across 22 industries.
Consumer and retail companies are expected to see a resurgence in Q4 FY24 from muted demand in semi-urban and rural areas in the festive season in Q3, the survey finds.
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.
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 that, as the festive season enters its final phase, the momentum in hiring is set to continue.
Healthcare and Pharmaceuticals stand out with 86% workforce expansion. Electric Vehicles and Infrastructure follow closely behind at 85%. 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%.
"Observing the dynamic evolution of India's economy, there's a distinctly optimistic tone among employers. An impressive 79% of them are planning to increase their workforce, indicating a robust financial foundation supporting this optimism, particularly for Q4. 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," says Kartik Narayan, CEO of staffing, TeamLease Services.
The second half of the ongoing fiscal is projecting positive incremental hiring, including workforce expansion, new hiring, and replacement hiring, as per the report.
Bangalore has the highest rate of incremental workforce expansion at 89%, followed by Chennai at 83% and Mumbai at 82%. For new hires, Bangalore 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 Bangalore at 78% and Chennai at 76%.
While the report carries positive sentiment for the financial services sector, it flags cautious moves from banks, NBFCs and Fintechs with increased regulatory pressure from the RBI on lending norms for riskier credits.
"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," says Balasubramanian A, vice president and business head, TeamLease.
