TeamLease Services has published its ‘Employment Outlook Report’ for the service and manufacturing sectors for the first quarter (April to June 2023).
A report published by TeamLease states that despite the ongoing global turmoil, hiring intent in India has steadily increased over the past year. In terms of business size, large organizations in the service (86%) and manufacturing (73%) sectors have weathered the recession well and have higher levels of hiring intent than in the previous quarter.
The company has launched its “Employment Outlook Report” for the Services and Manufacturing sectors for Q1 (April to June 2023).
Compared to the same quarter last year (April-June 2022-23), hiring intentions for the first quarter of April-June FY23-24 are 10 percent higher. Nearly 64 percent of employers (compared to 54 percent in the first quarter of 2022) are willing to increase their resource pool across all industries. However, compared to 4Q FY23, the hiring outlook has witnessed a decline of 4%.
According to the report’s findings, the first quarter predicts a good outlook, especially for entry- and junior-level employees, in both the service (73 percent and 71 percent respectively) and manufacturing (49 percent hundred and 55 percent respectively).
Mid-level prospects (54%) in Services and (32%) in Manufacturing are also balanced. In terms of business size, large organizations in the service (86%) and manufacturing (73%) sectors have weathered the recession well and have higher levels of hiring intent than in the previous quarter. Across both quarters and firm sizes, the service sector has higher hiring intention levels than the manufacturing sector.
Sharing his views on the industry and the findings of the report, Kartik Narayan, Managing Director, Personnel, TeamLease Services said, “Industries around the world, including those in India, have been hit hard affected by the current global unrest, which has resulted in large… scaled layoffs, a hiring freeze, and a looming economic recession.However, the hiring outlook in India has continued to improve over the last year, with 64% of service and manufacturing employers expressing a positive view of hiring.”
He said the main reason for this is the changing global investment dynamics and precautionary measures being taken by companies.
For candidates looking to secure job opportunities in the service sectors, some of the key industries leading the hiring supply are telecommunications (96 percent), financial services (93 percent), e-commerce and startups allied (89 percent), retail (87 percent) and educational services (83 percent).
For those looking to build a promising future in the manufacturing sector, some of the prominent industries are Healthcare & Pharmaceuticals (91%), FMCG (89%) and EV & Infrastructure (73%).
From a sectoral perspective, in Metro and Tier-1 cities, the intention to hire services is (91%) and the manufacturing sector is (85%). Tier 1 cities like Delhi (95 percent) and Mumbai (92 percent) in services and Mumbai (98 percent) and Chennai (91 percent) in manufacturing are thriving mainly in financial services, telecommunications, information technology and manufacturing, engineering and infrastructure. FMCG, Healthcare and Pharmaceuticals respectively. However, rural hiring intentions are the lowest of all geographies and sectors. The services sector, on the other hand, has a marginal growth of 26%.
As the world is in an era of massive digitization, the demand for skilled workers has increased to 3% and 2% in the first quarter of April-June of the fiscal year 2023-24 for services and manufacturing, respectively. In contrast, in the April-June first quarter of the 2023-24 fiscal year, intent to hire for blue-collar jobs declined 6 percent for services and 8 percent for manufacturing , while the engineering function increased slightly. Companies are also focusing more on digital marketing strategies to adapt to changes in consumer behavior.
“Given the current deployment, adoption and growing number of use cases of 5G, the telecom sector in India is witnessing an increase in infrastructure investment to meet the growing needs of local customers and As a result, telecom companies plan to invest Rs 2 billion in building large scale data centers, resulting in steady growth and job creation for blue-collar workers , gig and gray collar, added Mayur Taday, Business Director, TeamLease Services.
Taday stated that in addition, the information technology industry is also looking to establish data centers. While there is demand for traditional non-white collar jobs in the sector, workforce rationalization globally and in India has affected hiring intentions.
Considering the attrition trend, the service industry is seeing a low talent retention rate, especially in growth companies (11%) and mature companies (15%), while the manufacturing industry is seeing an increase positive in segments such as textiles (2.23%). Power and energy (6.47 percent) and Manufacturing, engineering and infrastructure (8.14 percent), the same industries had seen attrition of 1.22 percent, 5.63 percent and 7.51 percent cent, respectively, between October and December 2022.
