The increase in consumer spending and the renewed focus on market expansion will have a positive impact on hiring states TeamLease Employment Outlook Report. As per the report, hiring outlook has registered a 4 percentage point growth. E-commerce and tech start-ups alone, the biggest contributor to net addition of jobs, will see a 23.6% growth in jobs during the period April to September’16.
A detailed drill on the employment sentiments across industries according to the report, 6 out of the 9 sectors studied have expressed interest in hiring. With a 3 and 2 point increase in intent talent in FMCG, telecom and e-commerce & start-up will be the biggest gainers this half year. However, manufacturing & engineering and infrastructure seem to be bearing the brunt of negative sentiments created by the slow progress of the Make in India initiative. On the functional front, sales, IT and blue collar profiles will benefit substantially from the net positive sentiment. The rush to acquire driving and delivery skills seems to be boosting the blue collar jobs tremendously. The profile will witness a 9 percentage increase in demand.
KEY FINDINGS OF THE STUDY
- Consumer sentiment and spend powers hiring sentiment, notwithstanding a tinge of negative sentiment with the Make in India initiative in the Manufacturing and Engineering and the Infrastructure sector. The Net Employment Outlook improves by 4 percentage points to 93 than the previous half year.
- Small businesses (69, up 5 points) in cities – Metros and Tier-1 (97, up 4 points) – drive Employment Outlook and this is likely to up Entry level hiring significantly (70, 5 points up). Blue Collar (74, 9 points up), IT (85, 6 points up), Sales (94, 4points up) and Marketing (78, 3 points up) jobs are likely on offer.
- A majority of sectors and cities improve on their previous half year’s outlook, although each of them modestly (either 3 or 2 percentage points up). Telecommunications, FMCG, Pune and Chennai improve their employment Outlook by 3 points each. Financial Services (5 points down) and Kolkata (6 points down) are the prominent losers. Infrastructure and Manufacturing and Engineering lose marginally.
- Ecommerce and Tech Start-ups (2 points up, 23.6% job growth), FMCG (3 points up, 11.4% job growth) and Telecommunications (3 points up, 10.13% job growth) grow marginally in a routine show by sectors. Healthcare and Pharmaceuticals (2 points up, 14% job growth), Retail (2 points up, 14.4% job growth) and Information technology (2 points up, 14.2% job growth) follow a couple of rungs down.
- The top three sectors (by city) in terms of employment outlook growth are –
- Mumbai: Healthcare & Pharma (4%) / Telecom (3%) / Information Technology (3%)
- Delhi: Healthcare & Pharma (8%) / Retail (4%) / Infrastructure (4%)
- Bangalore: Retail (6%) / Financial Services (5%) / Healthcare &Pharma (3%)
- Kolkata: Financial Services (4%) / Healthcare &Pharma (4%) / Infrastructure (3%)
- Chennai: Manufacturing & Engineering (6%) / Telecom (3%) / Retail (3%)
- Pune: Financial Services (6%) / Healthcare &Pharma (5%) / Manufacturing & Engineering (4%)
- Hyderabad: Infrastructure (3%) / Telecom (4%)
- Ahmedabad: Infrastructure (6%) / Telecom (4%) / Retail (3%)
- Businesses drive employment sentiment, relatively more than government initiatives, for this forthcoming half year. The Make in India initiative has been a critical driver of employment sentiment over the past couple of half years. This time round, however, there is a tinge of downward sentiment associated with the initiative, due to the negative job growth in 8 key sectors of the economy. This has had a small negative impact on hiring sentiment in the Manufacturing and Engineering and the Infrastructure sectors.
Elaborating on the report, Mr. Kunal Sen, Senior Vice President, TeamLease Services said, “Make in India initiative which was the critical driver of employment sentiment over the past couple of half years seems to be losing its sheen. In fact, the job market is maturing and giving way to business growth leading hiring. We are confident the buoyancy created will stabilise the market and lead to job creation.”
City wise, except for Kolkata and Ahmedabad, most of the cities ooze exuberance. With a 3 point increase in outlook Pune and Chennai seems to be topping the list. From a geography perspective, as per the report hiring is still largely clustered in the metros and Tier 1 cities. However, Tier 2 and 3 cities are also expected to contribute to the optimism as consumer spending in organized retail chains and ecommerce in these geographies are picking up steam.
An in-depth analysis, TeamLease Employment Outlook Report is a comprehensive study that brings forth the important employment and business trends that will play a significant role in determining how job creation and hiring pans out in India over the next six months. The study covers 9 key industry verticals namely FMCG, Manufacturing &Engineering, BFSI, Telecommunication, Pharma & Healthcare, IT & KS, Retail and E-commerce & Technology Start-ups across 8 cities. The report serves as a reference manual to corporate houses to understand the employment trend in the present market scenario at major cities across the country.