Hiring across entry, junior levels to pick up: Study

TeamLease Services, an Indian staffing company, has released its Employment and Business Outlook Report for the half year (HY1) period beginning April to September 2014. The study notes the employment and business trends that will play a significant role in determining how job creation and hiring will pan out in India over the next six months.

The trends are compared to the period starting October 2013 - March 2014.

According to the study, the outcome of the General Election that is due in May as well as sector-specific policy changes that are expected have spurred the corporate sector. The study goes on to say that from a sector perspective, healthcare and pharmaceutical, financial services and infrastructure are expected to drive growth among the top eight cities in India. Mumbai, Delhi, Bangalore and Ahmedabad will lead the pack.

"Good tidings are anticipated for the Indian economy. This is obviously going to reflected on job creation," says Rituparna Chakraborty, Senior Vice-President and Co-Founder, TeamLease Services. "The overall sentiments have significantly improved this time around. We are confident that it will translate into on-ground action over the next six to 12 months," she adds.  

How will the General Election impact hiring across India? Presently, companies are in wait-and-watch mode, adds Chakraborty.

"Companies are expecting a positive turn of events both from investment and hiring. Sector wise, the government and the private sector are actively involved in a range of infrastructural initiatives. Therefore, this sector expects more projects. Election time spending from the central and state governments is anticipated to fuel infrastructure funding this year," she says.

When it comes to hiring from a sector perspective, IT recovers (3 per cent) from a gloomy outlook in the previous half year (HY2) from October 2013 to March 2014.

Telecom sees growth (3 per cent) after a flat outlook in HY2. Manufacturing and engineering (-2 per cent) and ITeS (-1 per cent) continue to have a negative hiring sentiment like in the previous half year. Following an exuberant sentiment in HY2, the trend has reversed in retail/FMCG as hiring outlook sees a marginal decrease (2 per cent) in the upcoming half year.

City-wise drill down indicates that most cities will have a positive hiring outlook in the forthcoming half year (HY1).

Bangalore (5 per cent) and Ahmedabad (4 per cent) continue to see a boost in their outlook just like in the previous half year (HY2). Mumbai has gone past the stable sentiment of HY2 and can see substantial growth (4 per cent) in HY1. New Delhi and Pune could observe an increase (3 per cent each) in hiring outlook in HY1. Hyderabad (2 per cent), Kolkata and Chennai (1 per cent each) might witness a slight dip in sentiment over the previous half year.

The study saw 614 Indian companies participating in the latest round. It has focused on employment growth potential, business outlook and hiring forecasts with relation to location and company profile.