The lockdown to curb the spread of COVID-19 brought economic activity to a complete halt and employees are bearing the brunt. News of layoffs and salary cuts by firms are abound and is not about to stop anytime. Overall job market is grim and firms are not planning to hire new employees as well.
For the first time in last 15 years, only 5 per cent companies of India Inc. intend to hire new people in the next three months. The results are findings of the Employment Outlook Survey released by global workforce solutions company ManpowerGroup. Almost 695 employers across the country were surveyed for the report.
From these 5 per cent, the sectors that will be welcoming most new hires are Mining and Construction with strongest hiring intention at 12 per cent. Following this is Finance, Real Estate and Insurance, where 9 per cent companies were positive about recruiting new candidates.
The most adversely impacted sectors are the Service and Manufacturing, which indicated hiring intentions of 4 per cent and 2 per cent, respectively. From the previous quarter, these sectors have seen a decline of 9 and 7 percentage points respectively.
"Corporate India is rationalising its workforce in response to the economic slowdown. It is indeed a "wait and watch" game as organisations are gearing up for the post lockdown era where they anticipate an upsurge in demand," said Sandeep Gulati, Group Managing Director of ManpowerGroup India.
The strongest hiring pace is recorded in medium-sized organisations, followed by the large-sized and small-sized organizations.
From a region perspective, North and South regions indicate a more positive outlook compared to the West and East of India.
"Over the last few months, there has been a transformation of the employment pattern and the current scenario of employment in India is fluid and depends on the demand generation in the new normal," says the report.
Globally, the firm had interviewed over 34,000 employers in 43 countries and territories to forecast labor market activity in the third quarter of 2020.
The encouraging news, however, is that India features among the top 4 countries out of 44 countries that projected a positive hiring trend. The other three are Japan, China and Taiwan with a Net Employment Outlook of +11 per cent, +3 per cent and +3 per cent respectively for July to September, 2020.
Employers in all 43 countries and territories report weaker hiring sentiment when compared with this time one year ago. The strongest hiring pace is anticipated in Japan, India, the United States, China and Taiwan, while employers in Singapore, Costa Rica, Colombia, Peru and South Africa forecast the weakest labour markets.
From the total, employers in 35 countries and territories expect to reduce payrolls in the period up to the end of September 2020.