11% uptick in hiring activity, freshers in retail sector see highest salary growth: Report

The IT-Software & Services industry continues to lead with the highest salary packages across different experience levels.

There has been an 11 percent uptick in hiring activity on a year-on-year (YoY) basis in July 2024, despite a slight month-on-month (MoM) decline of 1 percent, and, overall, the job market shows a positive momentum, according to foundit Insights Tracker (fit).

Further, fresh graduates in the retail and telecommunications sectors have seen the most significant salary growth, with a 15 percent and 14 percent increase, respectively. Freshers in the retail industry receive an average minimum salary of Rs 3.3 lakh per annum (LPA) and an average maximum salary of Rs 5.2 LPA.

Experienced professionals with more than seven years in the advertising, market research & PR industry saw a 15 percent growth in salaries over the past year (2024 vs 2023), highlighting the industry’s focus on attracting top talent.

Their salaries range from Rs 11 LPA to Rs 33 LPA.

The software & IT services segments continue to lead, with the highest salary packages across different experience levels. Salaries of freshers in the IT sector range from Rs 4.1 LPA to Rs 7.5 LPA, indicating a strong demand and the value placed on IT skills, right from the entry level.

Offering a hiring overview for July 2024, Sekhar Garisa, CEO, foundit (previously Monster APAC & ME), a Quess company, said: “The strong focus of the recent Union Budget on productivity and job creation is an encouraging sign for the recruitment industry. We have also noticed that salaries have consistently risen, driven by higher demand for fresh talent and competitive offerings. This growth is likely fuelled by high-growth sectors, such as technology, digital marketing, and e-commerce.”

Consumer electronics industry boom drives growth 

The tracker reveals that the consumer electronics sector saw a remarkable YoY growth in hiring, with a 45 percent increase. This surge is driven by technological advancements, AI developments, and innovative designs in consumer electronics devices, such as smartphones, TVs, gadgets, smartwatches, etc.  The manufacturing industry also saw a 43 percent yearly growth in hiring, reflecting the ripple effect of this boom.

Even the automotive industry saw an 18 percent yearly growth in hiring, driven by investments and sustainability initiatives by the government.

The real estate and construction & engineering sectors have also shown an impressive 32 percent and 29 percent increase, respectively, in hiring over the past year, spurred by budget reforms, sustainability, and green initiatives.

On the other hand, the import/export sector faced multiple hiring challenges over the past year, with a significant 32 percent drop in July 2024, compared to last year.

However, the recent Union budget developments suggest a potential for gradual recovery in the coming months. Other sectors that witnessed a dip in hiring include shipping/marine (-31 percent), and agriculture (-17 percent).

Hospitality sector emerges as employment hub

Roles in hospitality and travel sectors continue to see a remarkable surge in hiring by 28 percent (July 2024 vs July 2023). This growth highlights the dynamic environment, diverse roles, and promising career trajectories that the hospitality sector offer.

This gradual uptick mirrors the complete recovery of the travel industry since the pandemic and underscores the government’s push towards the sector’s growth. And the boost in travel during the summer holidays has further fuelled demand and highlighted the sector’s resurgence.

Similarly, roles in marketing and communications witnessed a 24 percent YoY increase, reflecting a heightened focus on brands establishing a strong digital presence and connecting with their audiences online. Hiring for medical job roles also has seen a spike, with a 22 percent yearly increase in hiring in the healthcare sector.

Conversely, certain job roles witnessed a decline in hiring. Customer service roles experienced a sharp downturn (-25 percent), suggesting a potential slowdown in demand or shift in hiring needs, driven by the rise of automation and AI technologies.  Similarly, sales and business development job roles also saw a notable decrease, with an 8 percent drop this year. Other sectors that have experienced a sharper decline in hiring include engineering/production (-7 percent) and finance and accounting (-6 percent).

Coimbatore leads job growth in Tier 2 cities

Coimbatore has emerged as the leader in job growth among India’s Tier-2 cities, with a remarkable 24 percent increase , followed closely by Jaipur with a 23 percent rise.

Other cities showing strong growth include Delhi-NCR (18 percent), Chennai (14 percent), and Pune (12 percent).  Month-on-month, Chennai and Kochi maintained a stable hiring environment with a 5 percent increase each.

Bengaluru is also witnessing a surge in hiring, driven by the tech sector’s growth and urban development, now expanding into Tier-2 cities. However, some cities like Mumbai (-4 percent), Chandigarh (-4 percent), and Baroda (-4 percent) saw a slight decline in hiring.