Formal sector hiring seems to be on the rise with India Inc hiring more after two years of the pandemic.
According to the Flexi Staffing Industry Employment Growth report, for the first quarter of fiscal 2023, the staffing industry reported a 6.6 per cent growth in the April to June quarter on a sequential basis, adding 66,000 new flexi-workforce and registering a robust demand for flexi workforce after the third Covid wave.
The staffing industry grew 28 per cent year on year, adding 2.33 lakh new formal contract workforce in the period between July 2021 to June 2022, said the report by the Indian Staffing Federation. “Formal flexi or contract employment growth was largely witnessed from sectors like ecommerce, retail, manufacturing, BFSI, as they generated high demand,” it said.
General staffing demand from sectors like e-commerce, retail, manufacturing, BFSI were the main employment generators in the April-June 2022 quarter. IT Staffing industry demand remains cautious but employment is continuing with promising growth from Fintech, IT Infra, Cloud, Cybersecurity, Data analytics to address with demands for digital adoption across sectors.
About 15 per cent of the flexi-workforce transferred to permanent employment while 82 per cent preferred to continue as flexi employees. However, job seekers continue to be more than jobs in many cases. According to Lohit Bhatia, President, ISF, on an average of the six candidates that apply for an IT sector job, one gets selected. For non - IT jobs, one out of three candidates are selected. The selection depends on a number of factors including skills, location and culture.
“Candidates with skills continue to have more job offers,” he said, adding that a lot of industry players believe they would be able to expand more if they had more talent available.
The outlook on flexi hiring remains bullish he said, with the festive season and government policies such as the 5G spectrum auction as well as growth in the BFSI segment auguring well for the future.
Bengaluru tops in intent to hire
Meanwhile, Bengaluru has emerged as the top city with the highest intent to hire in the second quarter of the fiscal, driven by the growth in the IT, ecommerce, FMCG and other allied sectors, said a report by Teamlease Services.
“In the July to September quarter, according to the comprehensive Employment Outlook Report, 95 per cent of employers expressed the intent to hire more, compared to 91 per cent in the April to June quarter,” said the report.
From a pan India perspective, 61 per cent of India Inc were keen to hire during the period as against a 7 per cent increase over last quarter.