Hiring sentiment to increase positively: Teamlease Report
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 sentiment is 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
o KPO hiring in Sales (+5%) and Ahmedabad (+4%)
o Ecommerce/Tech Start-ups hiring in Ahmedabad (+5), Hyderabad, Bangalore and Kolkata (+4% each)
o Media & Entertainment in Bangalore (+5%) and Delhi, Hyderabad and Pune (+4% each)
o Financial Services in Bangalore, Kolkata and Pune (+4% each)
o 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 with 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 -
o Mumbai: Financial Services (+4%), KPO, Construction & Real Estate, Media & constructions, EC&TS (+3% each)
o Delhi: Media & Entertainment and BPO/ITES (+4% each); Retail, Financial Services, Construction & Real Estate and KPO (+3% each)
o Bangalore: Financial Services (+4%) | Media & Entertainment (+4%) | Ecommerce & Tech start-ups (+4%) | KPO, BPO/ITES, Retail and Telecommunications (+3% each)
o Kolkata: Financial Services and Ecommerce & Tech start-ups (+4% each) | Retail, Educational Services and KPO (+3% each)
o Chennai: Financial Services, Retail, Media & Entertainment and Ecommerce & Tech start-ups (+3%)
o Pune: Media & Entertainment (+4% each) | Financial Services and Retail (+3% each)
o Hyderabad: Ecommerce & Tech start-ups and Media & Entertainment (+4%) | KPO, Construction & Real estate, Financial Services and Retail (+3% each)
o 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.
