Amid negative sentiment around job losses, a report by staffing firm TeamLease Services has some good news to offer. According to the Employment Outlook Report, India will add 11.5 lakh jobs in the first six months (April-September) of financial year 2019-20. The report also says that about 57 per cent of industries are projected to witness an increase in their net employment outlook.
Travel and hospitality and BPO/ITeS with a 4 per cent rise are the leading industries that will lead the optimism. The positive outlook is attributed to the increase in investments, the revised FDI regulations and the new governance policies across sectors. These are followed by power, energy and logistics at three per cent.
The report surveyed 775 Indian enterprises and analysed functional and environmental aspects across 19 sectors to evaluate employment outlook trends.
According to the report, eleven out of nineteen sectors surveyed project an increase in net employment outlook. Retail, logistic, educational services and fast moving consumer goods and durables (FMCG&D) alone will add around 1.66 lakh, 1.49 lakh, 1.17 lakh and 1.10 lakh jobs, respectively.
Eight sectors (such as marketing and advertising, telecommunications, agriculture, KPO, healthcare and pharma etc) anticipate a decrease in outlook.
"The positive business outlook created by the stock market rally and increased investments seem to be having a corresponding impact on the employment outlook. It has revived the net employment outlook, which had witnessed a drop of 2 per cent in the last half year to a 3 per cent rise in the current half year," said Rituparna Chakraborty, Co-Founder & Executive Vice President TeamLease Services.
From a geography point of view, the net employment outlook stands positive. A key contributor to the positive employment outlook has been the Tier-2 geographies, which apprehend a monumental 5 per cent increase in hiring sentiment, followed by Tier-3 towns and rural area where hiring is projected to increase by 2 per cent each.
While talent from across all levels stands to gain from this optimism, the biggest gainers will be freshers. 17 per cent of all net new jobs estimated to be created during H1FY19 are likely to be fresher hiring, indicating an augmentation of volume hiring.
From the overall creation of 11,44,286 jobs, majority of these roles will be across Mumbai (1,67,585), Delhi (1,59, 051) and Bangalore (1,50,120).
However, from a city drilldown, the net employment outlook is a mixed bag with seven out of the 14 cities indicating negative sentiments. While Pune (5 per cent), Coimbatore (4 per cent) and Indore (4 per cent) are on the upward trajectory, Kochi (-4 per cent), Gurgaon (-4 per cent) and Hyderabad are pulling the growth momentum downward.
Analysing hiring sentiment across business sizes, the report estimates a 5 per cent jump in hiring across medium sized businesses. Large and small enterprises are also expected to report a growth of 2 per cent and 1 per cent, respectively.
Medium-sized businesses see a huge jump (+5 per cent) in outlook and large businesses report an outlook growth of 2 per cent.
The report also analysed attrition trends. Out of the nineteen sectors surveyed, attrition significantly dropped in five sectors (construction and real estate, IT, KPO, telecommunication and travel and hospitality) in April-September 2018-19 as compared to October-March, 2018-19.
Attrition increased in five sectors (agriculture and agrochemicals, educational services, FMCG&D, financial services, and retail). Attrition in BPO/ITeS was at a 19.12 per cent and e-commerce and tech start-ups at 16.17 per cent. In correlation to the last six half years, attrition rates have risen above historical trends for educational services, financial services and retail while attrition has fallen for sectors such as construction and real estate, IT and travel and hospitality.
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