The Hindu Business Line : Hospitality industry to go slow on hiring

New Delhi, Oct. 15 The hospitality and tourism industry is gradually witnessing the ripple effects of economic slowdown as employers reported a dip in hiring intent even though the IT and ITeS segments remain upbeat.

Hospitality sector

Of the employers surveyed, while 45 per cent anticipated an increase in hiring, only two per cent reported a decrease in hiring, 42 per cent predicted no change in hiring intent and the remaining (11per cent) could not comment, according to Manpower Employment Outlook Survey (MEOS).

These subdued responses can be attributed to the cost-cutting measures put in place by the industry in view of lower occupancy rates.

According to the survey, in the coming months, many employers are likely to find ways to contain costs and be cautious about hiring decisions. History shows that temporary recruitment may overtake permanent in the short-term, with employers preferring the flexibility of being able to add or remove staff from their payrolls as needed.

“But as the global economy gains traction, we will see employers regain confidence and become more willing to add more employees permanently to their payrolls,” says the survey. The hiring intent in the IT and ITeS sector in India remains buoyant despite the fear of a slowdown in the economy with the sector reporting a ‘net employment outlook’ of 57 per cent in Q4 2008.

Out of the total employers surveyed, 58 per cent anticipated an increase, only one per cent reported a decrease in hiring, 26 per cent predicted no change in hiring intent and the remaining could not comment.

This can be credited to the upcoming IT and ITeS Special Economic Zones and parks.

All the four regions in the country were optimistic with more than half the employers reporting an increase in hiring intent. West India was most positive with a net employment outlook of 59 per cent, followed by the North with 58 per cent. East and South India jointly occupied the third slot with 57 per cent.

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