Bengaluru: India Inc’s hiring sentiment for the April-June quarter is the highest across 42 countries covered in a global survey by workforce solutions company ManpowerGroup. The net employment outlook – seen as a bellwether of labour market trends – in India for the next quarter at 36% is 14 percentage points higher than the global average of only 22% amid geopolitical and economic uncertainties, shows the latest ManpowerGroup Employment Outlook Survey shared exclusively with ET.

Hiring sentiment in the country are also stronger by six percentage points compared to April-June 2023, but one percentage point down from the January-March quarter.

“The continued resilience of the Indian economy, a promising outlook, and political stability are the key factors behind India’s positive hiring outlook,” said Sachchidanand Shukla, group chief economist at Larsen & Toubro.

“The economy registered robust growth of 8.4% in the third quarter of FY24, making it three consecutive quarters of 8% plus growth, in a shock-prone world. More importantly, India is likely to remain the fastest-growing among G20 economies over the medium term according to most forecasters,” he added. About 50% of 3,150 Indian employers covered in the survey said they would hire more people in the June quarter, while 14% expected a decrease in hiring intent or had no plans to backfill.

This puts the net employment outlook – the difference between companies looking to hire and those expecting a fall in headcount or hiring numbers – at 36%. About 33% of the Indian participants planned to keep workforce levels steady and 3% were unsure about hiring intentions.Shukla attributed the slight sequential slowdown in hiring outlook in the country to “global negatives and looming uncertainties such as the Red Sea trade disruption, tighter money policies and hawkish commentary from large central banks”.The impending election announcements – that normally lead to India Inc pushing larger decisions to the time when the new government is firmly in the saddle post elections – have also contributed, he added.

The latest ManpowerGroup Employment Outlook Survey was conducted in 42 countries including the US (in second place with NEP of 34%), China (32%), Singapore (24%), UK (23%), Germany (17%) and Japan (11%).

As per the survey, the most optimistic outlook in India is reported by employers in healthcare and life sciences, at 44%, and communication services, at 43%. Information technology comes in at third place with a net employment outlook of 41%. The least optimistic outlook for the June quarter is in the energy and utilities sector at 20%, the survey found.

“As a country, we have been consistent in demonstrating our capabilities and leveraging our demographic dividend,” said Sandeep Gulati, managing director of ManpowerGroup, India and Middle East. “Industries in healthcare, life sciences and renewable energy are seeing rapid growth rates with the aid and support of government initiatives,” he said.

Employers in all four regions in the country expect to grow payrolls during April-June. The hiring pace is most robust in the North with a net employment outlook of 40%, up 2 percentage points from the current quarter, followed by the West and the South with outlook of 35% (down 4 percentage points sequentially) and 33% (down 2 percentage points), respectively. The East has a net employment outlook of 30% for the June quarter, down 2% from the March quarter. Outlook in these four regions have risen by 7%, 1%, 6% and 10%, respectively, year on year.

Small organisations with 10-49 employees are the most cautious about hiring with a net employment outlook of 23%. Very large organisations with 1,000-4,999 employees are most positive, with an outlook of 44%, followed by those with 250-999 employees that have an outlook of 43%. Organisations with 5,000-plus employees have an outlook of 40%, the survey found.