National, 20th June, 2019: India’s largest composite staffing firm, TeamLease Services had recently launched their biannual ‘Employment Outlook Report’ for the April-September, 2019-20 HY. According to the report, Retail and Fast Moving Consumer Goods/Durables (FMCG/D) sector together will witness a net addition of 2.76 lakh new jobs in the current six months. The study states that the Retail sector will witness a 2% increase in net employment outlook, resulting in the addition of 1.66 Lakh new jobs while FMCD/G will observe a 1% increase outlook and will add 1.10 lakh new jobs.
As per the findings of the report, with 27,560 new jobs Delhi tops the list in retail. Closely on the heels is Bangalore at 22,770 new jobs. As per the study, the exponential growth witnessed by the sector coupled with entry of foreign retail giants, capacity expansion and acquisitions are some of the key drivers of the job growth. While Delhi and Bengaluru were the top job creators in Retail; Mumbai (14,770 new jobs) and Delhi (10,800 new jobs) will be the leaders for FMCG/D. Setting up of food parks, capacity expansion, acquisitions by the existing players, regulatory changes like easing the FDI in ‘cash and carry’, single and multi-brand retail through automatic routes are the key aspects that will push job creation by the sector on the growth trajectory.
Commenting on the findings, Mr. Mayur Saraswat, Head of Digital & IT, Teamlease Services, said “Apart from government interventions like easing of FDI norms, expansions by the domestic players, the increase in domestic consumption will also positively impact and bolster the job creation by these sectors. In fact, the job creation by Retail and FMCD/ G will witness a 15.11% and 10.31% growth respectively. Further, not only experienced talent seems to benefit from the optimism in these sectors; it will see a positive impact on fresher hiring as well. Retail sector alone will be creating 33,310 new fresh graduates jobs across cities.”
KEY FINDINGS OF THE STUDY
For the April-September, 2019-20 HY
· GLOBAL TRENDS: With the fears about an impending recession subsiding Net Employment Outlook saw incremental improvement for Europe, Middle East and APAC for the forthcoming, April-September, 2019-20, HY.
o Europe witnessed the highest increase in Net Employment Outlook [3%] for the April-September, 2019-20 HY, followed by the Middle East [2%] and APAC [1%] while the outlook for Americas stays steady at 42%. Africa [-2%] reports the lone drop in outlook and the Net Employment Outlook for India improves by 3% to 95%.
· INDIA: A 3% rise in India’s Net Employment Outlook takes it to a high of 95%, for the April-September, 2019-20 HY. The GDP growth forecast for this quarter remains slack.
· SECTORS: 11 of the 19 sectors surveyed witnessed an increase in Net Employment Outlook, and the remaining 8 reported a decrease in their outlook, for the April-September, 2019-20 HY.
o Positive: Travel & Hospitality [+4%], BPO / ITeS [+4%], Power & Energy [+3%], Logistics [+3%], Retail [+2%], Financial Services [+2%], Educational Services [+2%], Consulting [+2%], Manufacturing, Engineering & Infrastructure [+2%], Construction & Real Estate [+2%] and FMCG/D [+1%].
o Negative: Marketing & Advertising [-1%], Agriculture & Agrochemicals [-2%] , Telecommunications [-2%], KPO [-3%], Healthcare & Pharmaceuticals [-3%], IT [-4%], Media & Entertainment [-4%] and Ecommerce & Tech Start-ups [-5%].
· CITIES: Half of the 14 cities surveyed improve their outlook and the remaining half witness a reduction in their outlook for the April-September, 2019-20 period compared to October-March, 2018-19.
o Positive: Pune [+5%], Coimbatore [+4%], Indore [+4%], Chennai [+3%], Ahmedabad [+3%], Kolkata [+3%] and Delhi [+2%]
o Negative: Mumbai [-1%], Chandigarh [-1%], Nagpur [-2%], Bangalore [-3%] , Hyderabad [-3%], Gurgaon [-2%], Kochi [-2%]
· GEOGRAPHIES: Tier-2 cities witness a stupendous increase (+5%) in hiring sentiment for the forthcoming April-September, 2019-20 HY, followed by Tier-3 towns and Rural areas (+2% each).
· HIERARCHY: All tiers of the hierarchy – except the Senior-levels – witness a healthy increase in hiring sentiment. The outlook for Mid -levels grows by +4%, and the outlook for Entry and Junior levels by 3% each.
· BUSINESS SIZE: Medium-sized businesses see a huge jump (+5%) in outlook and Large businesses report an outlook growth of 2%. The outlook for Small businesses increments by 1%.
· FUNCTIONAL AREA: Engineering (+5%), Office Services (+4%), Blue Collar (+4%) and Marketing (+3%) are likely to see handsome increase in hiring, while hiring sentiment for the Sales and IT functional areas is seen to stagnate.
· Attrition rates dropped significantly in 5 of the 19 sectors during the previous HY (October-March, 2018-19) as compared with the FY (April – March, 2018-19) while 5 other sectors witnessed significantly higher attrition during this period.
o Drop in attrition: Construction & Real Estate, IT, KPO, Telecommunication and Travel & Hospitality
o Increase in attrition: Agriculture and Agrochemicals, Educational Services, FMCG& D, Financial Services, and Retail
· FRESH GRADUATE HIRING: 17% of all net new jobs estimated to be created during the April-September, 2019-20 HY are likely to be Fresher hiring (across the 19 sectors and Tier-1 cities – Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune) The leading city-sectors are –
o Retail-Delhi [8,250 jobs], Educational Services-Bangalore [6,870 jobs], Retail-Chennai [5,550 jobs], Retail-Bangalore [4,960 jobs], Educational Services-Mumbai [4,180 jobs], FMCG/D-Mumbai [4,210 jobs]
A detailed report, the study also analyses the attrition trends across sector. According to the findings of the report, both FMCG& D and Retail experienced a significant increase in attrition in April- September 2018-19 as compared to October-March, 2018-19. Attrition in Retail is seen at a 19.82% and FMCG/D at 16.03% respectively.
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 and the global market over the next six months. The report serves as a reference manual to corporate houses to understand the employment trend in the present market scenario in major cities across the country and the World. The report analyses functional and environmental aspects across 19 sectors and 14 geographies to provide an in-depth insight into the hiring sentiments. It has surveyed 775 enterprises in India and 85 businesses across the globe to evaluate employment outlook trends.