Hiring activity will continue to be robust in the third quarter, particularly in the services and the financial sectors, according to the latest recruitment survey.
Indian employers, the survey adds, are the most optimistic among those in the 41 countries and territories surveyed.
Employer optimism in the services sector is driven by high growth and the expected rise in demand in the ITeS sector, and also in an attempt to trim costs, many international banks are shifting jobs to India, boosting the outlook in finance, insurance and retail sector to a level that matches the sector’s strongest forecast, first reported in the second quarter of last year.
Similarly, the outlook is positive in all the geographical regions, with employers in the east reporting the region’s strongest outlook since the survey started in 2005, he adds.
The survey covered 5,244 employers across India.
“While rapid growth in the retail sector – due partly to the relaxed legislation regarding single-brand retail – is expected to create millions of jobs in the next three years, it is causing structural talent shortages that the Retailers Association of India hopes to combat with the training of five million people in the next five years,” says industry sources.
Employers in all four regions of India report positive hiring plans for the coming quarter. The NEO (Net Employment Outlook) of 78% reported in the east reflects a dynamic labour market. Booming hiring prospects are also evident in the west where the outlook stands at 52%.
Employers report bullish hiring intentions in both the south and the north, with outlooks of 44% and 43%, respectively. When compared with the previous quarter, hiring prospects strengthen by a steep margin of 27% in the east while for the west, it improves by 2%.
However, a 7% decline is reported by employers in the south. The NEO of 50%, adjusted for seasonal fluctuations, indicates Indian employers are among the most optimistic.
NEO is the percentage of employers anticipating an increase in hiring less the percentage of employers expecting decrease in hiring. Quarter-on-quarter, hiring intentions strengthen by 5 percentage points and the outlook is 6 percentage points stronger year-over-year.
Sectoral comparisons show, employers in all seven industry sectors – finance, insurance & real estate, manufacturing, mining & construction, public administration & education, services, transportation & utilities, wholesale & retail trade – expect to grow staffing levels in the third quarter.
The most optimistic hiring plans are reported in the services sector and the finance, Insurance & real estate sector, with NEO of 55% and 53%, respectively.
Transportation & utilities sector outlook stands at 52%, and employers in both manufacturing sector and the mining & construction report an outlook of 49%.