The job market in India is likely to see significantly muted hiring in the January-March quarter. This is on expected lines as companies are going to be cautious before hiring in the fourth quarter of financial year 2023.
According to the ManpowerGroup Employment Outlook Survey conducted across 3,000-plus employers, about 48 percent of Indian employers said they will hire more people in the first quarter of the 2023-24 fiscal. Nearly 16 percent of employers expect a decrease in hiring intent, and 34 percent expect to keep their workforce levels steady. Only 2 percent are unsure about their hiring intentions.
The survey, shared with CNBCTV18.com, shows the net employment outlook by India Inc for first quarter of 2023 to be at 32 percent, declining 22 percent on a quarterly basis and 17 percent from the corresponding period a year ago. Companies looking to hire and those expecting a fall in hiring numbers make up the net employment outlook.
Also read: TeamLease report shows positive hiring sentiments across manufacturing, service sectors for Q4
"Employers are cautious due to the impending recession and deepening global slowdown, which also created a stir in the IT sector during the previous quarter," said Sandeep Gulati, managing director, ManpowerGroup India.
When compared on a global level India stands at a better position. The hiring market in India for the quarter is ranked second in the Asia-Pacific Middle-East Region is ranked second after Singapore while shows a net employment outlook of 33 percent.
“India may be impacted in the short term, but the market is expected to see a balanced approach with growth in the tech sector and startups," added Gulati.
The survey further forecasts an increase in payroll for all eleven industry sectors during the coming quarter.
In terms of hiring intent, the IT, Finance and Real Estate sectors will show strong hiring intent with the Net Employment Outlook at over 39 percent. This will be followed by the Consumer Goods and Services sector with the outlook at over 37 percent.
Due to the skills gap, Transport, Logistics, and Automotive indicate the lowest hiring intent with over 22 percent, down 17 percent from last quarter and 22 percent points compared to corresponding period a year ago.
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