Slowdown in July-Sept hiring activity: Survey
Only 13% of companies in the country plan to hire more people in the July-September quarter while 61% employers anticipate no change at all in their payrolls, according to the latest Manpower Employment Outlook Survey.
That puts the net employment outlook at +13%, down from +16% in the same quarter last year.
This comparative decline in hiring intentions comes even as two Cabinet committees have been formed to address rising unemployment and sluggish economic growth, both to be headed by Prime Minister Narendra Modi. According to the Manpower survey that tracked 4,951firms across industries, small businesses report net employment outlook of +13% while medium and large companies report +12%.
The survey categorised organisations into three sizes: small, or firms that employ 10-49 people, medium (50-240 employees) and large (250-plus employees). Compared with the third quarter of calendar 2018, employment outlook declined by 6 percentage points for large employers and by 2 percentage points and 3 percentage points for small and medium employers, respectively.
Net employment outlook in the survey is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location in the next quarter. This time, 0% employers forecast a decrease. The Manpower survey was conducted after a six-month gap.
Services sector employers reported the strongest hiring intentions with a net employment outlook of +16%, followed by payroll gains of +11% projected in manufacturing; mining and construction, and the wholesale and retail trade sectors.
Some hiring opportunities are expected in finance, insurance, real estate, public administration and education sectors where outlooks stand at +8%. Transportation and utilities sector reported outlook of +6%.
The south region is expected to hire the most with a net employment outlook of +14%, followed by west and north, with outlooks of +13% and +12%, Eastern region had an outlook of +9%. Hiring prospects marginally weaken in all four regions when compared with this time one year ago.
“New government initiatives, coupled with investors’ interest in startups, are generating a growth trajectory in some sectors,” said Cynthia Gokhale, associate director, marketing, at ManpowerGroup India. “India now must prioritise investing in education to bridge the skill gap between the requirements in the market and job seekers skillsets.”
Source: ET Tech