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Employment outlook at seven-year high, strong rebound in hiring in December quarter: ManpowerGroup survey

An increase in payrolls is expected for all seven industry sectors during the coming quarter. The strongest year-on-year improvements are reported in Services, Manufacturing and Finance, Insurance and Real Estate.

September 14, 2021 / 05:43 PM IST

Hiring activity is expected to witness a strong rebound  in the fourth quarter (December quarter) with employers reporting the most optimistic hiring outlook in 7 years, according to the ManpowerGroup Employment Outlook Survey.

As many as 64 percent of the 3,046 employers surveyed indicated increasing their headcounts before the end of the year, expecting pandemic restrictions to ease and demand for products and services to rise. This is a big jump from only 6 percent of companies with the intention to hire in the July-September quarter.

About 20 percent of companies reported a decrease in the workforce whereas 15 percent expect no change. Only 1 percent of the companies were unsure about the hiring sentiment in the December quarter against 44 percent in the July - September quarter.

Net employment outlook, which is the difference between companies looking to hire and those expecting a fall in headcount stood at 44 percent, compared with 5 percent in the July September quarter.
Hiring sentiment improved by 37 percentage points in comparison with the previous quarter and by 40 percentage points from the corresponding quarter a year ago.

"Corporate India is showing healthy signs of recovery and an overall positive sentiment is gripping the market. Many of the deep-rooted structural factors that have sustained Indian economy over the years like geopolitical stability, diversified economy, demography, etc, are likely to play a pivotal role in the new normal," said Sandeep Gulati, Group Managing Director of ManpowerGroup India.

Vaccine rollouts gaining tremendous momentum with most of corporate India due for the second vaccine coupled with the onset of the festive season may be the probable cause of the spike in optimism, he added.

Gulati however cautioned that the hiring intent needs to be observed due to the possibility of a third wave and the continued talent shortage that most industries are finding difficult to bridge.

Sectoral & Regional Trends 

An increase in payrolls is forecasted for all seven industry sectors during the coming quarter. The strongest year-on-year improvements are reported in Services (51 percent), Manufacturing (43 percent) and Finance, Insurance and Real Estate (41 percent).

Region-wise trends show that the strongest hiring pace is anticipated in the West at a net employment outlook of 49 percent followed by an outlook of 45 percent in the east, 43 percent in the north and 37 percent for the south.
Shreeja Singh