Young Investor

Job market spikes in 2011

Updated on: Apr 23, 2011
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Which is the best place to be as a jobseeker now? I am in Chennai, should I move on? Where is the opportunity now - in the IT sector or financial services? With interest rates going up, my EMI has increased; will my employer increase my pay this year?

If these are some of the questions that have been troubling you, then the recent employment trend surveys from Naukri.com, a job portal that has more than 34,000 clients and Ma Foi Randstad, an HR consultant company have some findings you might want to check out

Ma Foi Randstad Employment Trends Survey (MEtS), which studied 650 firms across 13 sectors, estimates the creation of 1.6 million jobs in 2011 (vs. 1.13 million in 2010). The top sectors for the year would be pharma, real estate, construction, IT and ITeS.

In line with the above estimates, the Naukri JobSpeak index has also been showing a up trend in the last two months. This index, which tracks the new additions to job listings on its popular naukri.com portal every month was at 1,050 in February (base July 2008), the highest ever in last two years.

Improving prospects

There was a massive scale lay-off in 2008 in India as the credit crisis in the West triggered a slowdown in economies across the globe.

The Naukri JobSpeak index came down from 1,000 in July 2008 (when the jobs listed in the portal were scaled to 1000) to 697 in December 2008. However, the situation has well improved in the last two years, shows statistics.

The Naukri JobSpeak index inched up from 829 in February 2009 to 947 in February 2010 and to 1,050 in February this year. This is encouraging! So, is the momentum going to continue? It looks like it.

Info Edge, the company which owns naukri.com, conducts a survey every six months to find out the scenario in the job market. The recent January survey has seen 80 per cent of the respondents saying they will create new jobs in the first half of 2011.

The right place

To make use of the opportunities, one has to be present in the right place. Pune, Kolkata and Chennai are the top three cities where the increase in employment would be around 18-20 per cent in the current year, according to MEtS. In Chennai, demand is driven by recruitment by automobile and auto-component makers, says Mr E. Balaji, MD& CEO of Ma Foi Randstad. However, those looking for specialised jobs in the financial sector will have to look to re-locate to Mumbai or Pune, he added.

But with situation having improved in the West, is it time to look for openings abroad? No, says Mr Balaji, “India is more promising now. The US job market is just recovering. The UK and the Middle East are still in problems. India is a happening story now and there are many options that job seekers can explore…”

The right sector

Those of you who are working in the pharma sector and are unhappy with your boss, could start looking for a change of scene now. The sector has lot of openings this year. MEtS has predicted that the pharma sector will add a total of 49,400 jobs in the current year, which will be an increase of 17.4 per cent over the last years' levels. Healthcare and hospitality sectors will be adding around 2,48,500 jobs and 2,18,200 jobs in the current year respectively.

Real estate, construction and IT/ITeS are also to see strong hiring trends. Employers in the banking and financial services sector are however, slightly cautious. MEtS says that job openings in this sector will increase by less than 10 per cent this year. Stiff competition among players and the rising cost pressure is weighing on fresh recruitments in this sector.

Freshers in demand

Freshers, i.e. candidates with less than three years work experience are in high demand in the market now. Of all new recruitments in February, 33 per cent happened in this category, reports Info Edge's survey.

Opportunities are opening up for candidates with 4-7 years of work-experience too. 37 per cent of total hirings in February took place in this category. Openings for senior positions however, are limited. Only 3 per cent of total hirings in February took place in the category where a candidate's experience was over 16 years.

Wage increases expected?

Having told you where opportunities lie, let's now consider these facts.

The Ma Foi Randstad survey conducted cross 13 industries says that there will be an increase of 10-11 per cent in salary for employees across sectors on an average. Employees in IT/ITeS and consumer retail businesses are ones that will see the highest increase of 12.4-12.8 per cent in wages for the year. Those in the pharma sector and entertainment business will also see a good 11 per cent increase in pay.

Info Edge's survey also has some positive findings. This survey that was conducted across 1,000 recruiters in January saw 34 per cent of respondents saying they will make an increase of 10-15 per cent in the salary for their employees.

So, keep your fingers crossed and head towards a favourable year. All the best!

Published on April 28, 2011

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