Govt, PSUs, Defence Sector Observe 14% Upsurge In Hiring: Survey

Hiring activity dipped two per cent month-over-month (MoM), according to latest report by foundit Insights Tracker. 

On a year-on-year (YoY) scale, the overall index reflected a 10 per cent decline. The index dropped from 277 in November 2022 to 249 in November 2023. 

While hiring has stagnated, India’s economic prospects appear promising due to the aid and support received for Indian industries, startups, and manufacturing within the country today. The efforts of the PSU (Public Sector Undertakings) sector to bridge the employment gap have been recorded in the recent report from the National Sample Survey Organisation (NSSO) as well, which states that the unemployment rate has dipped to 6.6 per cent in the September quarter from 7.2 per cent a year ago.  

“We anticipate the job market situation to improve in the upcoming months, resulting in more stability and growth. And, in turn, creating new job prospects in the market," said Sekhar Garisa, CEO, foundit (previously Monster APAC & ME).

Government Initiatives & Policies Drive Job Spikes in PSU and Defence Sectors
On a MoM basis, the Government, PSU, and Defence industries (14 per cent) showed the maximum increase in job postings. Government policies and initiatives such as ‘Make In India’, Atmanirbhar Bharat Rojgar Yojana (ABRY), etc have been in support of generating employment and have substantially helped in reducing the unemployment rate in India. Considering the goal is to employ all Indians, the government realises that it is essential to spend money on Indian industries and manufacturing within the country. With the rapid expansion of the metro rail business and railways (including Vande Bharat services), the government is doing their best to create employment opportunities for the youth.  

The Office Equipment and Automation sector also registered a (four per cent) growth in hiring, notably driven by the demand for workforce skills, which requires employees to interact with ever-smart machines that have integrated artificial intelligence (AI) and Internet of Things (IoT) further shaping the future of the sector. The adoption of automation and AI technologies will bring numerous benefits in the form of higher productivity, GDP growth, improved corporate performance, and new prosperity. Other industries that have performed well in November ’23 compared to October ’23 are Retail (three per cent) and Healthcare/Pharmaceuticals industries (two per cent). The retail industry’s seasonal hiring plans provided modest temporary employment goals, thus signalling low unemployment during the festive season.  

Tier 2 Cities Emerge As New Talent Epicentres; Coimbatore Witnesses A Remarkable 13% Increase In Hiring 

Coimbatore stands out with a remarkable 13 per cent MoM increase in hiring, potentially attributed to the increasing availability of a diverse talent pool in these cities, a mutually advantageous development for both recruiters and professionals, as tier II cities are a cost-effective destination for businesses.    

Apart from Coimbatore, Kochi, known for its industrial significance, experienced a Four cent month-on-month rise in hiring activity. Following suit, Jaipur showcased a two per cent increase in job opportunities.  However, Baroda (0 per cent) maintained a relatively stable hiring environment. Conversely, a few cities, such as Kolkata, Mumbai, and Pune, faced declining hiring percentages, dropping by five per cent, six per cent, and four per cent respectively.  

Across the board, numerous cities, including Hyderabad (-1 per cent), Ahmedabad (-1 per cent), Delhi-NCR (-1 per cent), and Chennai (-2 per cent), maintained a relatively stable hiring environment with subtle decline, signifying a muted growth in the job market.      

Purchase, Logistics and Supply Chain Job Roles Drive 6% Growth In Hiring 
Job roles in purchase, logistics, and supply chain topped the list of job functions with a six per cent increase in online hiring activity. With the increasing number of multinational companies setting up operations in India, the supply chain management field is expected to grow and create more job opportunities. Furthermore, the finance and accounts sector saw a notable five per cent surge in demand, including expertise in financial analysis, risk management, compliance, taxation, and knowledge of evolving technologies like data analytics and AI in finance. Professionals with a blend of financial expertise and technological acumen are particularly sought after. This increase highlights the industry’s growing dependence on professionals capable of navigating the dynamic terrain of digital marketing and communication strategies. 

There was a downward trend in hiring for Engineering/Production (-5 per cent), followed by Senior Management positions (-4 per cent), Sales & Development (-4 per cent), and Customer Service positions (-4 per cent). This month, the demand for Marketing and communications job roles and software, hardware, and telecommunications roles was moderate.  

Senior and mid-senior level professionals see a downturn in hiring 
In the current job market, characterised by a global economic slowdown, freshers with 0 to 3 years of experience hold the upper hand compared to senior and mid-senior level professionals with over 7 years of experience. Current statistics reveal a downturn trend in hiring mid-senior-level professionals (-7 per cent) and senior professionals (-6 per cent). With the growing demand in certain sectors, industries such as automotives/ancillaries/tyres, telecom/ISP, advertising, market research, Public Relations (PR), Retail, and Travel and Tourism sectors have seen an increase in their salary brackets for specific years of experience. However, certain sectors have shown a dip in their salaries as compared to the previous quarter, including BFSI, BPO / ITES, Education, FMCG, Logistics, and Courier/Freight/Transportation sector. 

The minimum salary for freshers ranges from Rs 2,10,994 (BPO/ITES) to Rs 3,94,794 (IT-Hardware, Software) and the salary for a professional with (11-15) years of experience range from Rs 19,60,577 (Banking/Financial Services, Insurance) to Rs 33,09,292 (IT- Hardware, Software). Software and Hardware industry offers the highest salaries across all experience levels, followed by the Banking/Financial Services/Insurance industry. This is likely due to the high demand for skilled IT professionals in India. IT industry (Software and Hardware) also pays the highest salaries for entry-level professionals, with a salary range of Rs 3,94,794 to Rs 6,90,613. The BPO/ITES industry has the lowest salary ranges for all experience levels, followed by the Education industry.