The employment outlook in the country has dipped by 6 percentage points for April to September 2017 period, says a survey.
Recent layoffs in the IT sector might have dampened the overall mood, but hiring in the sector is expected to strengthen in the coming months. A recent employment survey expects hiring to improve in the next two quarters in the IT and engineering sectors.
The employment outlook in the country has dipped by 6 percentage points for April to September 2017 period, says a survey. Even though some sectors are still recovering from the government's demonetisation drive and hiring in entry and mid-level has reduced drastically, senior level hiring has improved by 5 percentage points, says an 'Employment Outlook Report' by TeamLease.
The report also notes it isn't the large businesses that are impacted, but the smaller ones where hiring sentiment is down nearly 10 points. Medium-sized companies, too, plan to hire less.
What sectors are hiring?
Thanks to the government's digital push, it is the financial services sector which is looking hire more with a 5 point jump in sentiment.
IT follows financial services, up 4 points and healthcare & pharmaceutical and knowledge process outsourcing follows close. Engineering and blue collar comes next with 2 points jump each.
"The steep fall in sentiment is in a limited nuumber of sectors; the broader picture of investments - private and FDI - and remonetisation have already begun improving overall sentiment"
Other sectors that are likely to hire are media & entertainment and e-commerce which witnessed a number of layoffs in recent times.
On the other hand, in sectors like construction & real estate and manufacturing, engineering and infrastructure, hiring is expected to be low.
"Hiring is set to slow significantly in FMCG, FMCD, BPO / ITeS and Power & Energy and marginally in Travel & Hospitality, Agriculture & Agrochemicals and Educational Services."
Demonetisation is the primary reason for dip in hiring in these sectors, says the report.In metros, which sectors are hiring?
Mumbai is likely to hire more followed by Bengaluru, Delhi and Hyderabad. Employment outlook for cities like Kolkata, Pune, Chennai and Ahmedabad looks weak in coming months, says the report.
Financial services tops the list in most cities including Mumbai, Delhi, Bengaluru and Chennai. In Pune, it is telecommunication that tops the list, media & entertainment in Hyderabad and agrochemicals in Ahmedabad.
E-commerce and internet startups take up the second spot in Delhi, Pune and Bengaluru while in Mumbai and Chennai, telecommunication will see rise in hiring.The bi-annual report provides a comprehensive overview of the mechanics of hiring, job growth, salaries and their drivers, trends and forecasts across eight cities and 16 sectors in India.