Hiring dipped 3 per cent month-over-month, whereas e-recruitment activities in India fell by 5 per cent in August 2023 compared to August 2022, according to the foundit Insights Tracker (fit). This comes even as the country’s GDP grew by 7.8 per cent in the April-June quarter of the current fiscal year (2023-2024).

The fall in hiring indices can be attributed to the challenges posed by inflation and the slow growth of other major economies, such as the USA, the report noted. However, IMF data states India’s economy is currently the fifth largest in the world and, based on current estimates, is projected to reach third place by 2029.

“While hiring has slowed down overall in several sectors in the country, our nation’s economy maintains its resilience amidst global uncertainties. In conjunction with an increase in festive recruitment, the collective effort is expected to improve the job scenario. Notably, India Inc. is increasingly pursuing fresh talent, with the tracker registering a significant 7 per cent year-on-year surge in fresher hiring,” said Sekhar Garisa, CEO, foundit (previously Monster APAC & ME), a Quess company.

Also Read | PMI Manufacturing rose to 58.6 in Aug, growth in job creation still slow 

Furthermore, industries such as shipping, travel, and tourism soar while the media industry faces challenges.

On a year-on-year (Y-o-Y) basis, hiring in the shipping industry was up 58 per cent, travel and tourism was up 44 per cent and advertising, market research, relations research, and public relations were up 22 per cent. According to the report, growth in the Indian shipping industry is led by robust export expansion, particularly in engineering goods, petroleum products, gems and jewellery, and chemicals.

The retail sector also witnessed a rise in e-recruitment activity by 21 per cent this August with the onset of the holiday season. Additionally, the NGO/Social Services sector saw a 17 per cent increase in job listings.

The home appliances industry continues to struggle, with a 26 per cent drop in job posting activity online, followed by media and entertainment (18 per cent) and IT hardware and software (17 per cent). While Y-o-Y data in the IT industry shows a downward trend, month-over-month data offers a more encouraging story with signs of steady improvement. Within the entertainment sector, the drop can be attributed to the intensifying free streaming competition on the OTT market as well as fewer people visiting movie theatres compared to the year before.

Also Read | Hiring in IT services sector down 25-30%: Report

Metro Hiring Slows Down; Tier-2 Markets Remain Talent Hotspots

Among tier-2 cities, hiring improved in Kolkata – 7 per cent, Ahmedabad --5 per cent, Baroda –4 per cent, Jaipur--4 per cent, and Kochi – 3 per cent in August 2023. As the employment environment in India evolves, Tier-2 cities are becoming important hubs for luring top talent due to the rising popularity of remote work practices, improved upskilling opportunities, and the rise of different industrial sectors in these areas.

However, a majority of metro cities noted a marginal decline in hiring activity. While Bangalore saw a 16 per cent dip, Hyderabad noted a 14 per cent drop in job postings, Mumbai at 9 per cent and Chennai 8 per cent.

Also Read | Hiring trends in start-ups to increase by over 7% in second half of year

Hospitality and travel roles topped the list of job functions with a 13 per cent increase in online hiring activity. This is in line with industry projections, as India’s travel and tourism sector’s contribution to the economy is projected at Rs. 16.5 trillion by the end of the year. Additionally, engineering and production positions saw an increase of 11 per cent possibly due to the expansion of import substitution and export potential and high global demand for Indian goods.

On the other side, there was a downward trend in hiring for customer service positions 24 per cent, senior management positions (13 per cent), and arts and creative positions (13 per cent). Hiring for software, hardware, telecom, and supply chain roles also saw subdued demand over the month.

foundit (formerly Monster APAC & ME), India’s leading talent platform, published the foundit Insights Tracker (fit), presenting the latest findings on hiring trends for August 2023.

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