If the third quarter was sluggish in terms of hiring activity, the fourth quarter is expected to bring good tidings for jobseekers. A remarkable expansion in workforce is likely in the second half of FY24 with 79 per cent of employers intending to hire or retain their workforce. Consumer and retail companies are expected to see a resurgence in Q4, which follows a muted demand in Q3.
According to ‘TeamLease's Employment Outlook Report’ for H2 FY24 (October 2023 to March 2024), that analysed data from 1,820 companies across 14 cities and employee trends across 22 industries, there is positive sentiment for the financial services sector but advised caution when it comes to banks, NBFCs and fintechs.
The surge in workforce expansion can be attributed to government policies and initiatives that have cultivated a business-friendly environment, TeamLease report added.
“A striking 79 per cent of the employers surveyed expect an increase in the workforce in their respective industries over the next six months to meet the surging demand. Both new hires, at 79 per cent, and replacement hires, at 74 per cent, are occurring rapidly, indicating a flourishing labour market in the country,” stated the report.
Healthcare and Pharmaceuticals sector stand out with an expansion of 86 per cent, while Electric Vehicles and Infrastructure follow with 85 per cent, the report stated on the trends across various sectors.
When it comes to hiring, Electric Vehicles and Infrastructure sector lead with 88 per cent, followed by Healthcare and Pharmaceuticals at 87 per cent. As for replacement hiring, Power and Energy leads the way at 88 per cent, followed by Fast Moving Consumer Durables at 85 per cent, and Healthcare and Pharmaceuticals at 84 per cent.
“Observing the dynamic evolution of India's economy, there's a distinctly optimistic tone among employers,” said TeamLease Staffing CEO Kartik Narayan, further adding, “ Despite a slower pace in Q3, this upward trend in employment isn't merely about increasing headcounts; it's a strategic move to leverage economic growth and take advantage of conducive policies, contributing significantly to the country's economic resurgence.”
Consumer-centric sectors such as EV and Infrastructure, Healthcare and Pharmaceuticals, Fast-Moving Consumer Durables (FMCD) are seeing a surge in job aspects because of a collective demand for innovation, sustainability and advancements in technology, said Balasubramanian A, VP & Business Head, TeamLease Services. The forward-thinking approaches of these sectors are changing the market dynamics, said Balasubramanian A.
When it comes to cities, Bengaluru has the highest rate of incremental workforce expansion at 89 per cent, followed by Chennai at 83 per cent and Mumbai at 82 per cent. Bengaluru leads with 87 per cent, Mumbai 86 per cent and Chennai 83 per cent when it comes to new hires.
For replacement hiring, Mumbai leads with 82 per cent, Bengaluru with 78 per cent and Chennai at 76 per cent. Tier-2 cities such as Coimbatore, Kochi, Nagpur, Chandigarh and Indore are also catching up as they gain business prominence.
In terms of functional areas, Human Resources leads workforce expansion with 71 per cent, followed by Marketing with 70 per cent and Information Technology as 70 per cent. HR leads the way again with 92 per cent when it comes to new hires, with Marketing following closely at 87 per cent. For replacement hiring, Information Technology function leads the way with 94 per cent, with Human Resources at 89 per cent..
Meanwhile, even as job prospects improve, there are many challenges along the way. According to 31 per cent of the respondents, skill shortages and mismatches between the talent and the job can have a significant impact on hiring. Around 19 per cent agree that technological advancements are a key factor in determining employment opportunities in India. Changes in policy will impact hiring trends too, believe 15 per cent of respondents.
However, the highlight is that 67 per cent of the respondents anticipate robust business development during H2 FY24. The hiring momentum is set to continue, even as the festive season enters its final phase, the report stated.
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