Hiring Sentiment to increase positively over the next few months, Teamlease employment outlook report
Posted on: 05/Jul/2018 11:26:32 AM
The latest Employment Outlook Report (HY1-2018-19) by TeamLease Services, India’s largest staffing company was launched today. A biannual report, it looks at providing an overview of the hiring and job growth sentiments for the period April – September 2018. The report forecasts an increase of 4% in the net employment outlook to 95%, (April– September 2018)as compared to 91% for the preceding half-year, October-March 2017-18. The increase in GDP and optimistic economic growth is being attributed to the positive hiring outlook.
The report surveys 695 small, medium and large companies across 16 sectors in 8 cities to understand the hiring sentiments. According to the report, eight out of sixteen sectors surveyed have indicated positive hiring sentiments with overall positive sentiment. Majority cities, 5 out of 8, have shown positive outlook towards hiring and the medium-size businesses were most optimistic (5% improvement over the past half-year) towards the hiring sentiment.
The Knowledge Process Outsourcing (KPO) sector will be the biggest gainer with 4% increase in the hiring sentiments, over the past half-year,across the employers surveyed. Some of the other top sectors with incremental positive hiring outlook were Ecommerce & Technology startups (+3%), Financial Services (+3%), Media & Entertainment (+3%), Retail, BPO/ITeS (+2%), FMCG/D (+2%) and Construction & Real Estate (+2%). With 4 percentage drop, Agriculture & Agro Chemical and Telecommunications are the top laggards in the first two quarter of the year, followed by Healthcare and Pharmaceuticals (-2%), Education Services (-2%), Manufacturing, Engineering & Infrastructure (-2%) and Travel & hospitality (-1%).
KEY FINDINGS OF THE STUDY
An acceleration in the job market as the Net Employment Outlook looks up significantly(+4 points) to 95%, (April– September 2018) as compared to 91% for the preceding half-year (October-March 2017-18)
The recovery is attributed to the hiring sentiment for Junior and mid level roles (+4%), Blue Collar roles (+5%) and Sales and Marketing profiles (+4% each)
Medium sized businesses (+5%) looking to hire in Metro and Tier-1 cities (+3%). The outlook improves by a significant 4% for large businesses and by 3% for small businesses
The outlook improves significantly in Mumbai (+4%) followed by Delhi (+3%) Bangalore, Hyderabad and Pune (+1% each). While the sentimentis significantly gone below in Kolkata (-3%), Ahmedabad (-2%) and Chennai (-1%).
The silver lining is a clutch of clusters that show promise for the HY
- KPO hiring in Sales (+5%) and Ahmedabad (+4%)
- Ecommerce/Tech Start-ups hiring in Ahmedabad (+5), Hyderabad, Bangalore and Kolkata (+4% each)
- Media & Entertainment in Bangalore (+5%) and Delhi, Hyderabad and Pune (+4% each)
- Financial Services in Bangalore, Kolkata and Pune (+4% each)
- Constructions & Real Estate in Ahmedabad and Chennai (+4% each)
Five of the seven Functional Areas – Blue Collar (+5%), Sales (+4%), Marketing (+4%), Information Technology (+2%) and Engineering (+1%) – are sought after by employers. Office Services (-1%) and Human Resources (-2%) are associated withth a drop in sentiment
Manufacturing makes a smart recovery, although hiring sentiment in the sector remains slightly low(-2%, up from -5% during the previous HY). The pall of gloom projected in public discourse seems to be based more on hearsay than on hard facts
The top three sectors (by city) in terms of employment outlook growth are -
- Mumbai: Financial Services (+4%), KPO, Construction & Real Estate, Media & constructions, EC&TS (+3% each)
- Delhi: Media & Entertainment and BPO/ITES (+4% each); Retail, Financial Services, Construction & Real Estate and KPO (+3% each)
- Bangalore: Financial Services (+4%) | Media & Entertainment (+4%) | Ecommerce & Tech start-ups (+4%) | KPO, BPO/ITES, Retail and Telecommunications (+3% each)
- Kolkata: Financial Services and Ecommerce & Tech start-ups (+4%each) | Retail, Educational Services and KPO (+3% each)
- Chennai: Financial Services, Retail, Media & Entertainment and Ecommerce & Tech start-ups (+3%)
- Pune: Media & Entertainment (+4% each) | Financial Services and Retail (+3% each)
- Hyderabad: Ecommerce & Tech start-ups and Media & Entertainment (+4%) | KPO, Construction & Real estate, Financial Services and Retail (+3% each)
- Ahmedabad: Ecommerce & Tech start-ups (+5%)| Constructions & Real Estate and KPO (+4% each)
Speaking about the report, Ms. Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services, said, “Job market across the globe is going through its transition phase with advanced technological interventions making their way to our lives. Asia-Pacific region has the most positive net employment outlook (62%) across global markets for the April-September, FY 19 as compared to October- March, FY 18. In fact, the positive hiring sentiment when benchmarked against global markets shows India to be ahead of the APAC (global leaders) by 33 percentages and ahead of Europe (global laggard) by 54%. The overall positive sentiment is in alignment with the growth in GDP. ”
The report further highlights that Mumbai continues to top the list with 4% growth in positive outlook with Delhi close behind with 3% rise. Bangalore, Hyderabad and Pune had a small incremental improvement in outlook of 1 percentage. The in-depth analysis indicated positivity in Metro and Tier 1 cities with Tier 2 substantially improving over the half year.
Further, from a hierarchy perspective, junior and mid level hiring is set to improve substantially with an increase in the hiring (+4). The entry level and senior level hiring has seen a modest improvement.
TeamLease Employment Outlook Report is a comprehensive study that brings forth the important employment and business trends that will play a significant role in determining how job creation and hiring pans out in India over the next six months. The report serves as a reference manual to corporate houses to understand the employment trend in the present market scenario at major cities across the country.
