In 2023, the job market faced significant challenges as major companies halted their hiring processes, while numerous businesses initiated widespread employee layoffs.
TeamLease Services, a company specialising in recruitment and human resources services, presented insights into India’s employment landscape for the latter half of the fiscal year 2023-2024 (October 2023 to March 2024) in a recent report. It highlighted a significant upward trend in workforce expansion, as 79% of employers expressed their intention to either maintain or increase their workforce during the second half of FY24.
Leveraging data from 1820 companies spanning 14 cities, the report provided an extensive analysis of projected employment patterns across 22 industries. This comprehensive study serves as an invaluable resource for businesses, HR professionals, and policymakers alike.
The report’s key findings indicate:
- Consumer and retail sectors are expected to rebound in Q4 following subdued demand observed in semi-urban and rural areas during the festive season in Q3.
- The financial services sector displays positive sentiment, yet emphasises a cautious approach among banks, NBFCs, and Fintech companies.
- This caution stems from heightened regulatory pressure imposed by the RBI, particularly concerning lending norms for riskier credits.
As per the report’s findings, the second half of the year is poised for positive incremental hiring, encompassing workforce expansion, new recruitments, and replacements. This surge in workforce growth is credited to government policies and initiatives aimed at bolstering employment prospects and fostering a conducive business climate.
India notably recorded an impressive 7.8% surge in GDP during the first quarter of the fiscal year 2023-24 (Q1 FY24). This robust GDP growth signals a potent economic resurgence, fuelling the acceleration in incremental hiring nationwide, as highlighted in the report.
The data underscores the substantial impact of economic conditions on the employment landscape, noted by 69% of respondents. Additionally, 53% of respondents emphasised the pivotal role of business growth or expansion in influencing employment dynamics.
India is set to experience a rise in job opportunities due to concerted efforts from both the government and the private sector to promote entrepreneurship. Addressing Skill Challenges Survey responses revealed that 31% of respondents highlighted the impact of skill shortages and mismatches between available skilled individuals and job requisites on the hiring landscape.
Moreover, 19% of respondents identified technological advancements as a crucial determinant in shaping employment opportunities in India.
Job trends in different functional areas
The report also highlights trends in different functional areas, emphasising specific functions in the job market:
- In terms of workforce expansion, Human Resources, Marketing, and Information Technology emerge as the top functions with 71%, 70%, and 70% growth rates, respectively.
- In new hires, the Human Resources function leads significantly at 92%, closely followed by Marketing at 87%. Regarding replacement hiring, the Information Technology function takes the lead at 94%, with Human Resources closely following at 89%.
Community Manager.