TeamLease Services has released its ‘Employment Outlook Report’ to showcase hiring sentiments for India’s employment stakeholders for H2 FY24 (October 2023 to March 2024). With data from 1820 companies across 14 cities, the report offers a comprehensive analysis of anticipated employment trends across 22 industries, making it an indispensable resource for businesses, HR leaders, and policymakers. The report indicates a remarkable trend in incremental workforce expansion, with 79% of employers intending to maintain or increase their workforce in the second half of FY24. Consumer and retail companies will see a resurgence in Q4 from muted demand in semi-urban and rural areas in the festive season in Q3. While the report carries positive sentiment for the financial services sector, we would observe cautious moves from banks, NBFCs and Fintechs with increased regulatory pressure from the RBI on lending norms for riskier credits.
According to the report findings, H2 is projecting positive incremental hiring, including workforce expansion, new hiring, and replacement hiring. This surge in workforce expansion can be attributed to government policies and initiatives aimed at fortifying employment opportunities and cultivating a business-friendly environment.
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79% of the surveyed employers are going to expand or sustain their workforce over the next six months
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Healthcare and pharmaceuticals, electric vehicles and infrastructure are the top industries experiencing incremental workforce expansion
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Bangalore, Chennai, and Mumbai are the top cities for incremental workforce expansion as well as for replacement hiring and new hiring
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More job opportunities in the Human Resources, Marketing, and Information Technology functional areas
Notably, India experienced a remarkable 7.8% surge in GDP during the first quarter of the fiscal year 2023-24 (Q1 FY24). This robust GDP growth underscores a potent economic rebound, driving the acceleration in incremental hiring across the nation. The report dives into the multifaceted factors that influence employment in India. According to the data, economic conditions significantly impact the employment environment, as cited by 69% of respondents. Furthermore, business growth or expansion is a significant factor, as mentioned by 53% of respondents. As a result of the government and private sector encouragement of entrepreneurship, India is poised to witness an increase in employment opportunities.
According to 31% of respondents, skill shortages and mismatches between available skilled personnel and job requirements can have a significant impact on hiring. Additionally, 19% of respondents concur that technological advancements are a key factor in determining employment opportunities in India. Another 15% of respondents believe that changes in policy, such as labour laws and regulations, taxation, investment incentives, industrial regularisations, and global trade dynamics, will significantly influence employment trends in India.
Another significant highlight of the report is that 67% of respondents anticipate robust business development during the October-March 2023-24 half-year period, reflecting India’s optimistic economic outlook. This optimism suggests that, as the festive season enters its final phase, the momentum in hiring is set to continue. A striking 79% 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%, and replacement hires, at 74%, are occurring rapidly, indicating a flourishing labour market in the country.
The report’s findings reveal remarkable trends across various aspects of the job market in India. Regarding industry trends, it is evident that Healthcare and Pharmaceuticals stand out with 86% workforce expansion. Electric Vehicles and Infrastructure follow closely behind at 85%. Moreover, the top industries for new hiring include the Electric Vehicle and Infrastructure Sector at 88% and Healthcare and Pharmaceuticals at 87%. For replacement hiring, Power and Energy lead the way at 88%, followed by Fast Moving Consumer Durables at 85%, and Healthcare and Pharmaceuticals at 84%.
Sharing his views about the industry and the report’s findings, Mr. Kartik Narayan, CEO – Staffing, TeamLease Services, said, “Observing the dynamic evolution of India’s economy, there’s a distinctly optimistic tone among employers. An impressive 79% of them are planning to increase their workforce, indicating a robust financial foundation supporting this optimism, particularly for Q4. 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.”
“As we navigate the evolving landscape, we have an opportunity to shape a brighter future for the workforce. We must continue to adapt, innovate, and invest in the skills and focus on diversity and inclusivity that will drive India’s growth in the coming months,” he added.
Also read: Labour migration role in economic growth
“The upcoming job landscape in consumer-centric sectors such as healthcare and pharmaceuticals, Electric Vehicles (EV), and Infrastructure and Fast-Moving Consumer Durables (FMCD) reflects commendable growth. This surge in job aspects is driven by a collective demand for innovation, sustainability, and advancements in technology. These sectors are at the vanguard of addressing societal needs, be it in delivering essential healthcare services, developing eco-friendly mobility solutions, or meeting evolving consumer preferences. Their forward-thinking approaches and adaptability to changing market dynamics pave the way for substantial job opportunities, marking a pivotal moment where industries align with the aspirations and necessities of the future.” – Balasubramanian A, VP & Business Head, TeamLease Services.
While commenting on the BFSI sector’s robust growth Krishnendu Chatterjee, VP and Business Head, TeamLease Services, commented, “79% of employers going for new hiring, and 70% for replacement hiring. Kolkata takes the lead in H2 for BFSI workforce expansion. The Human Resources function spearheads the incremental new hiring. The employment landscape is optimistic, with none falling below 65% in incremental new hiring across industries. Additionally, a substantial 85% incremental new hiring in blue-collar roles showcases the enduring value of hands-on operational roles.”
When examining trends by city, the report highlights specific locations where employment opportunities are thriving. Bangalore has the highest rate of incremental workforce expansion at 89%, followed by Chennai at 83% and Mumbai at 82%. For new hires, Bangalore maintains its prominence at 87%, with Mumbai at 86% and Chennai at 83%. In the category of replacement hiring, Mumbai leads with 82%, followed by Bangalore at 78% and Chennai at 76%. Tier-2 cities are not far behind as these cities are gaining business prominence and show high incremental workforce expansion in cities like Coimbatore, Gurgaon, Kochi, Nagpur, Chandigarh and Indore.
Regarding trends in different functional areas, the report underscores the significance of specific functions within the job market. In workforce expansion, Human Resources, Marketing, and Information Technology emerge as the top functions with 71%, 70%, and 70%, respectively. For new hires, the Human Resources function takes the lead with an impressive 92%, while Marketing follows closely at 87%. For replacement hiring, the Information Technology function leads the way with 94%, with Human Resources close behind at 89%.
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