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“The positive momentum in certain sectors like manufacturing and energy is an encouraging sign,” said Sekhar Garisa, chief executive of Foundit, an employment solutions firm. “Through our tracker, we could trace the steady monthly growth in hiring activity,” he said.
The index has jumped from 262 to 269 in the first two months of 2024, suggesting a positive outlook in employment opportunities.
On a month-on-month basis, industries such as oil/gas/petroleum, power, and IT hardware and software each experienced a 7% increase in hiring.
The government’s emphasis on renewable energy and electrification projects may have had a hand in enhancing recruitment in the power sector.
The uptick in production and manufacturing at 6% points to a rebound attributed partly to the impact of production-linked incentive (PLI) schemes with an outlay of Rs 1.97 lakh crore.Contributing to the improvement from the stagnant growth observed last month, these schemes have incentivised job creation within the manufacturing sector.Telecom/ISP and home appliances with month-on-month growth of 2% in February shifted from stagnation to a moderate increase.
Sectors like media and entertainment, FMCG and chemicals experienced a 3% uptick, showing a gradual return to normalcy in these segments.
The BPO/ITeS sector saw a 4% slide in job openings in February compared to the previous month. The decline is indicative of companies in the sector re-evaluating their operational strategies—including workforce requirements—to align with automation and the market’s changing demands.
On the back of the growing adoption of cloud-based solutions and other digital alternatives, office equipment/automation faced a 12% drop. Pointing to a cautious approach in hiring, sectors like health care at 3% and advertising and banking/finance both at 2% saw a minor decline.
The job market for freshers, in February, saw a 12% decline in hiring compared to the same period in 2023.
While hiring slowed down, sectors across the board witnessed a 24% surge in job applications. With approximately six applicants competing for each available position, there is heightened competition due to a large pool of job seekers vying for limited opportunities.
“Freshers face a challenging landscape with increased competition and fewer opportunities,” Garisa said. “This highlights the importance of equipping oneself with relevant skills and building strong profiles to stand out in this competitive environment.”
The IT sector, both hardware and software, saw its dominance dwindle to a 17% share of jobs, from 23% a year ago. Alternatively, possibly fuelled by increased healthcare needs, the sector has doubled its share from 5% to 10%.
Other sectors like BPO/ITeS and BFSI maintained stability in their respective shares, at 12% and 9%.
Due to funding challenges or strategic adjustments in their hiring practices, startups hired fewer entry-level positions, contributing only to 3% of jobs compared to 14% in February 2023.
Indicative of potential automation or re-evaluation of administrative needs by companies, HR and admin roles, too, witnessed a sharp decline from 17% to 4% on year.
Despite the demand for software, hardware and telecom roles remaining high, the sectors saw a decrease in their share from 32% in February 2023 to 27% in February 2024.
Potentially pointing to a growing emphasis on sales and business development for expansionary purposes, these roles saw a significant rise from 13% to 21%.
The period under consideration saw a notable change in demand for qualifications. Pointing to a saturation in the IT sector, there was a decrease in demand from 19% to 13% for IT graduates. Similarly, management graduates saw a slightly lower share, dropping from 11% to 10%.
Reflective of companies’ strategies to navigate challenging landscapes during uncertain economic conditions, there is a renewed focus on leadership roles. Roles in senior management saw a positive uptick, with hiring increasing by 6% in February instead of a 2% decline last month.
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