Economy

Hiring sentiment in India weakest in 15 years, says survey

Hemani Sheth Mumbai | Updated on September 08, 2020

The hiring sentiment in India is the weakest in 15 years, according to the Manpower Group Outlook Survey.

According to the survey report, India’s overall hiring outlook stands at over 3 per cent in Q4 2020.

“Hiring sentiment is the weakest since the survey began 15 years ago, remaining relatively stable when compared with the previous quarter, but declining by 16 percentage points in comparison with this time one year ago,” the report said.

“Indian employers expect slow-paced hiring activity during the next three months,” it said.

Categorising hiring sentiments

Hiring sentiment is bleakest in the Manufacturing sector, the Mining & Construction sector, the Services sector and the Wholesale & Retail Trade sector. While the strongest sector in terms of hiring right now with the Public Administration & Education sector, with a Net Employment Outlook of over 9 per cent.

In terms of scale, small businesses have reported the strongest hiring outlook of over 10 per cent. The hiring outlooks of medium and large-size enterprises stood at over 2 per cent and 1 per cent respectively.

From a regional perspective, the situation is relatively positive in North and East regions as compared to the West and South as per the report.

No change in payroll

In terms of salaries, payroll may increase in some sectors. However, a majority of employers, 54 per cent see no change in payrolls over the next few months.

“Payroll gains are expected in six of the seven industry sectors, although employers in five sectors report weaker forecasts in comparison with the third quarter of 2020,” the report said.

The Net Employment Outlook is derived by is subtracting the percentage of employers surveyed who are expecting to see a decrease in employment at their location in the next quarter from the percentage of employers anticipating total employment to increase.

The survey is based on interviews with 813 employers in India.

Published on September 08, 2020

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