Indian Employment Market Likely To See More Than 6% Expansion

TeamLease Services has released its ‘TeamLease's Employment Outlook Report’ to showcase hiring sentiments for India’s employment stakeholders for H1 FY25 (April 2024 to September 2024). With a comprehensive survey of 1,417 employers in 20 cities, the report analyzes anticipated directional and quantifiable changes in employment for businesses, policymakers and stakeholders. The report projects an incremental workforce expansion of more than 6 per cent over the first half year of FY 2024-25 across 23 industries. Findings indicate a positive hiring sentiment in the Indian employment market, with 56 per cent of surveyed employers stating that their workforce will likely grow in the coming months. 23 per cent anticipate maintaining their current workforce levels. In comparison, 21 per cent foresee declining staff numbers. 

According to the survey, the industries with the most employers indicating plans to increase their workforce are healthcare, pharma, automotive, manufacturing, engineering, and infrastructure. In terms of workforce size growth, the leading industries are construction and real estate, travel and hospitality, electric vehicles (EV), and EV infrastructure.

When examining trends by city, the report highlights specific Indian cities where employment opportunities are thriving. Delhi, Bangalore, and Hyderabad are at the forefront, with 53.21, 50.46, and 47.57 per cent of employers indicating increasing their workforce sizes in these established job hubs. In addition, emerging job locations such as Coimbatore, Visakhapatnam, and Jaipur are experiencing notable growth, with 18.28, 15.88, and 15.46 per cent of employers expressing interest in expanding their workforce. Start-ups, small businesses, and medium-sized companies are rapidly expanding their workforce.

Crucial to this positive employment outlook are the prevalent economic conditions, including the near 7 per cent GDP growth forecast for India in 2024 by most global rating agencies, which would make it the fastest-growing G-20 nation. Additionally, strong investment demand and peaking out of headline inflation, coupled with the greater emphasis employers place on technology and skills, make for a resilient job market in the face of hostile geopolitical conditions.

In terms of in-demand skills, employers are actively seeking candidates with strong communication skills, attention to detail, technical proficiency, and organisational abilities. This shift towards a more adaptable and skilled workforce is further underscored by the report's finding that nearly 43 per cent of organisations are focusing on bridging skill gaps, emphasising the shift towards a more adaptable and skilled workforce prepared for technological advancements and the advent of new skills. 

The report also highlights the impact of generative AI on workforce dynamics and talent management strategies. Generative AI holds the promise of transforming key business processes, and in response, 35 per cent of surveyed organisations report a substantial change in talent acquisition approaches to accommodate the integration of advanced AI technologies such as generative AI.