Robust hiring activity: Manpower Employment Outlook Survey

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The Manpower Employment Outlook Survey released today revealed that the job market in India is expected to remain vibrant in the third quarter of 2007. Of the 27 countries and territories surveyed globally this quarter, the hiring intentions continue to be robust in India with an overall Net Employment Outlook of +39%. This represents an increase of 8 percentage points quarter-over-quarter and a 4 percentage point decrease year-over-year. Of the 4,925 employers surveyed, 42% expect an increase in hiring activity in 3Q 2007, 3% anticipate a decrease, and 42% are expecting no change. The Net Employment Outlook is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location over the next quarter.

 

Employers in all eight countries and territories surveyed across the Asia Pacific region anticipate positive hiring activity for the third quarter. However, only Indian employers are anticipating a third quarter Outlook stronger than the previous quarter.

Commenting on the survey findings, Mr. Soumen Basu, Executive Chairman of Manpower India said:  "Robust hiring intentions across sectors can be attributed to businesses gaining momentum around this time of the year which is quite a cyclical process. Additionally, the completion of appraisals in most Indian companies amplifies the hiring activities as workers are more willing to change jobs."

The Manpower Employment Outlook Survey, conducted for the ninth consecutive quarter in India, reports that employers across all industry sectors are positive about their hiring intentions. Employers in the Services sector report the most optimistic outlook [+46%] with the Public Administration & Education employers indicating the weakest hiring intentions with a Net Employment Outlook of +27%. Hiring intentions in the Finance Insurance & Real Estate industry are considerably stronger quarter-over-quarter with an increase of 13 percentage points in the Net Employment Outlook - this is the first improvement since the fourth quarter of 2006. Outlooks in five out of the seven industry sectors have improved  quarter-over-quarter.

Mr. Basu added:  "The continued confidence and global competitiveness of the Indian IT sector has fuelled the increased activity in the labor market.  Moreover, the IT-ITeS industry is expected to increase its contribution to the GDP this year, and this growth will certainly augment the hiring activities."

The Manpower Employment Outlook Survey conducted in India includes employers in seven industry sectors: Finance/Insurance/Real Estate; Manufacturing; Mining & Construction; Public Administration & Education; Services; Transportation & Utilities; Wholesale & Retail Trade.

 

Sector Trends

 

Quarter-over-Quarter: Overall positive hiring intentions have been reported by employers in India. The strongest Outlook is observed among the employers in the Services sector [+46%], this is an increase of 13 percentage points quarter-over-quarter. Employers' intentions to hire in the Public Administration & Education industry sector [+27%] are moderately weaker by6 percentage points since the previous quarter of 2007. Further in this quarter employers in the Manufacturing [+40%] and Transport & Utilities  [+38%] sectors anticipate  a 12 percentage point stronger hiring environment . Employers in the Mining & Construction sector forecast a slight dip of 3 percentage points [+37%], while  employers in the Wholesale & Retail Trade sector [+38%]  reported a considerably stronger Outlook that was up  10 percentage points. Employers in the Finance/Insurance/Real Estate sector have reported an improvement  of 13 percentage points in their Net Employment Outlook over the last quarter.       

 

Year-over-Year: The comparisons reveal a year-over-year decline  of 4 percentage points in the Net Employment Outlook. Of the seven industry sectors surveyed, Mining & Construction sector employers reported the largest decline in hiring activity [down 12 percentage points]. The Transportation & Utilities and Wholesale & Retail Trade sectors both report an improvement  of 1 percentage point, while no change is reported in the Manufacturing sector.

 

Regional Trends

 

Employers in all the four regions in India anticipate positive hiring intentions across industry sectors. Employers in the South are the most optimistic with a Net Employment Outlook of +44%, which is an improvement  of 13 percentage points over the previous quarter. Hiring intentions are weakest in the North, where the Net Employment Outlook is +33% --   2 percentage points weaker when  compared to the previous quarter. Employers in the East expect robust hiring activity in this quarter, with an improvement  of 11 percentage points over the previous quarter. Meanwhile, employers in the West report a Net Employment Outlook of +41%, an improvement  of 12 percentage points as compared to the previous quarter.

 

Global Results

 

The Survey released today revealed that third-quarter hiring is expected to be positive in all of the 27 countries and territories surveyed, with employers in Germany and Norway reporting their most optimistic hiring plans since the survey began in these countries in 2003, based on seasonally adjusted data. In addition to India, the strongest third-quarter hiring prospects reported globally were in Singapore, Peru,  Canada, Argentina, New Zealand, Australia, Norway, Costa Rica, Japan and Hong Kong.  Conversely, employers in Italyexpect to offer the fewest employment opportunities.  Employers in 15 countries and territories are reporting weaker hiring plans compared to the second quarter, while those in 14 are reporting improved hiring plans from one year ago. Of the six countries surveyed in the Americas, Peruvian employers [+48%] are the most optimistic about adding to their workforce, while employers in the remaining countries expect continued positive hiring activity. The hiring intent is expected to be similar in Canada, Mexico and the United States. Employers in Singapore are the most optimistic in the Asia Pacific region with a Net Employment Outlook of +48% followed by those in India [+39%] while Australia and New Zealand both have a robust overall Net Employment Outlook of +27%.

 

Sourced From: Good Relations (India) Pvt.  Ltd