The Current State Of Jobs: What Should India Inc Expect From 2023?
The year 2022 was the year of new workplace trends. From moonlighting to quiet quitting, a global landscape of layoffs and economic slowdown have led to shifts in talent demand and employee priorities. However, a national-level focus on job creation in the recent budget announcements and positive hiring indicators in the beginning of the year have created grounds for optimism.
Hiring Outlook for 2023: A Sector Breakdown
Despite fears surrounding the economic slowdown and resulting layoffs, employers continue to be optimistic about hiring in 2023. Indeed’s workforce survey indicates that 45% of employees foresee up to a 20% increase in hiring, with January seeing elevated demand for talent across categories.
Metroes continue to witness high hiring activity, with Bangalore topping the list with 16% of total job postings in January 2023. While this trend continues, a rise in employment from Tier-2 and Tier-3 cities is also anticipated, especially with rapid growth in the gig economy.
Interestingly, non-tech sectors have witnessed a higher hiring demand in January. The pandemic demonstrated the pivotal role of healthcare and allied sectors, leading to increased investments in healthcare infrastructure and amplified demand for skilled talent. Initiatives like the ‘National Digital Health Mission’, creation of new medical colleges & hospitals and establishment of new nursing schools will lead to further job creation. Our data too reveals that healthcare and nursing topped job postings at the end of December 2022.
Additionally, the government’s announcement to increase capex investment will result in a positive hiring outlook for gig workers, especially blue-collar jobs. The emergence of app-based functions like delivery and ride-sharing have brought in formalization for the sector, and this capex push is also likely to effect the sector positively.
Understanding the Jobseeker Pulse
Today, changing employee demands have made attracting, retaining and engaging talent a challenge for HR professionals. It is equally crucial for employers to cater to the needs of the post-pandemic workplace, and for jobseekers to stay on top of the curve in a competitive job market,
2022 trends like moonlighting and quiet quitting have demonstrated that employee wellbeing and flexibility are a key demand for employees, and is likely to continue in 2023 as well. A competitive salary is no longer enough to attract top talent, and employers must evaluate these trends to relook their current workplace policies and hiring strategies. Additionally, employees are also prioritizing opportunities for learning and upskilling, especially within the fast-evolving digital skill sets. Our survey revealed that 50% of employees are preparing for new opportunities by reskilling/upskilling.
Rampant layoffs have led to a general dissatisfaction among employees, with our recent survey showing that more than half of all the employees (57%) are unenthusiastic or bored about their current jobs. Moreover, this news has also dampened employee spirit and created a trust deficit, with Indeed’s data revealing that 65% of employees are unwilling to go the extra mile in their jobs. In this environment, it is critical that company leaders communicate approachability, understanding and transparency to win the support of their workforce. As the effect of global movements on the Indian jobs landscape unfolds, it’ll be integral to also relook at workplace culture and the current sentiment at work to retain talent.
Positive outlook for 2023
As we enter 2023, the focus for enterprises is on restoring equilibrium and building workplace resilience. The hiring landscape is even more competitive, and executives must devise talent acquisition strategies to emerge as an employer of choice.
Overall, it appears to be clear that the job market will continue to see growth in 2023. Government proposals to streamline tax administration and minimize compliance burdens on taxpayers are expected to provide a boost to the business environment and attract more companies to India, resulting in further job growth across sectors. The strong focus on job-creation will drive macroeconomic growth, improve the standard of living, and contribute to a more equitable distribution of income, helping to navigate the impact of layoffs and recession in the job market. By staying abreast of trends in the jobs ecosystem, understanding the needs and demands of the workforce and creating proactive strategies to address the challenges brought in 2022, both employers and jobseekers can make the most of these developments.
