Slowdown Blues: Only 13% companies plan to hire more people in July-September quarter: Survey
BusinessToday.In June 11, 2019
Only 13 per cent employers in India have shown interest in adding to their workforce during the July-September quarter of 2019, according to a survey. This marks a decline from 16 per cent companies that were enthusiastic about hiring during the corresponding period last year.
The ManpowerGroup Employment Outlook Survey reported a decline in net employment outlook at a time when the Modi government 2.0 is expected to solve the job crisis in economy. Two Cabinet committees, both headed by Prime Minister Narendra Modi, have been formed to look into the employment scenario and economic growth of the country.
The survey showed that 61 per cent companies do not expect any changes in their payrolls during the third quarter of 2019, whereas 26 per cent were not sure about changes in their payrolls. No company reported plans to reduce their workforce. The survey encompassed over 59,000 employers across 44 territories and countries.
India's job market looks consistent in comparison to the last quarter, although it is still going through the transition with a slight slowdown in employment, said ManpowerGroup India Associate Director Marketing Cynthia Gokhale
"New government initiatives coupled with investors' interest in start-ups is generating a growth trajectory in some sectors. Due to the dynamics of a rapidly evolving business environment, contract staffing is taking precedence over the traditional workforce," Gokhale added.
Going by the size of the company, the survey divided its sample into three categories - small medium and large companies. Out of these, small businesses showed the most promise with a net employment outlook of +13 per cent. Both medium and large businesses showed a net employment outlook of +12 per cent.
Regionally, the south and west regions look the most promising with a net employment outlook of +14 per cent and +13 per cent, respectively. The northern region reported a net employment outlook of +12 per cent, whereas the eastern region is at +13 per cent.
Sectoral comparisons in the survey showed hiring plans weakening in all seven sectors when compared to this time one year ago. The services sector emerged as the strongest employer during the third quarter of 2019, with a net employment outlook of +16 per cent. Manufacturing, mining and construction, and wholesale and retail sectors are expected to be the most optimistic sectors with +11 per cent net employment outlook.
Finance, insurance and real estate, as well as public administration and education posted a net employment outlook of +8 per cent. Transportation and utilities reported a net employment outlook of +6 per cent.
"Major trends that will drive recruitment in 2019 in India are diversity, automated recruitment, virtual reality, and remote working options among other. With more than a million unemployable graduates that the Indian universities are churning out every year and thousands of jobs disappearing each year, India now must prioritize investing in education to bridge the skill gap between the requirements in the market and job seekers skill sets," Gokhale said.
(Edited by Vivek Punj)