The Hindu Business Line : Hiring may slow down in coming quarter

Bangalore, April 24 The job market, which experienced robust hiring activity for the last six quarters, is expected to slow down in the coming quarter.

While IT, ITeS, manufacturing and engineering sectors have expressed a decrease in hiring intentions in the April-June quarter, telecom and infrastructure employers have upped their employment outlook index compared to the last quarter.

In its Employment Outlook Report for April-June 2008, staffing company TeamLease Services, says net employment outlook index for the April-June quarter stands at 74 points, down six index points from the previous quarter.

There is a dip in the business outlook index by nine points to 70 points. This is a definite impact of the dollar depreciation and the dip in the Indian bourses, points out Mr Sampath Shetty, Vice-President, TeamLease Services Pvt Ltd.

“The IT & ITeS sector is the worst hit; the US economy conundrum has an implication on hiring sentiments in India,” he says.

Huge job opportunities in the infrastructure sector are because of the infrastructure deficit, which has kept the momentum of FDI influx consistent.

While employers in Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad are not too optimistic and have expressed a dip in hiring intentions, there is an increase in hiring index points of companies in Mumbai, Delhi and Pune cities.

Interestingly, the hiring trend in Class-I cities are increasing; while it is decreasing in the metro cities, says the study. Intention to hire talent from Class-II, Class-III and rural areas is also down.

Non-IT organisations too, have been aggressively hiring in this campus season largely in the sales and marketing function.

With the not-so-impressive salary hike in the current appraisal year, organisations also foresee a lot of lateral movements over the next quarter.

Chennai witnessed the highest attrition rates during the last one year. During the last quarter, Chennai along with Bangalore experienced an attrition rate higher than 19 per cent.

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