TeamLease Services has released its ‘Employment Outlook Report’ for the services and manufacturing sectors for Q1 (April to June 2023). The report is an in-depth analysis of hiring trends across industries, functions, and regions for non-white collar job roles. According to the report, despite the ongoing global turmoil, hiring intent in India has steadily increased over the past year. In comparison to the same quarter in the previous year (April-June 2022-23), hiring intentions in Q1 Apr-Jun FY23-24 is 10 per cent higher. Close to 64 per cent of employers (compared to 54 per cent in Q1, 2022) are keen to increase their resource pool across industries. However, compared to Q4 FY 22-23, the hiring outlook has witnessed a 4 per cent dip.
According to the report findings, Q1 is projecting a strong outlook, especially for entry and junior-level employees, in both Service (73 per cent and 71 per cent, respectively) and Manufacturing (49 per cent and 55 per cent, respectively) sectors. The outlook for mid-level (54 per cent) in Services and (32 per cent) in Manufacturing is also balanced. From a business size perspective, large-sized organisations in the services (86 per cent) and manufacturing (73 pe rcent) sectors have weathered the recession well and have higher levels of hiring intent than in the previous quarter. Across the two quarters and sizes of companies, the services sector has higher levels of hiring intent than the manufacturing sector.
As per Kartik Narayan, CEO, Staffing, TeamLease Services, Industries around the world, including those in India, have been severely affected by the current global unrest, which has resulted in large-scale layoffs, a hiring freeze, and an imminent economic downturn. Despite this, hiring prospects in India have continued to improve over the past year, with 64 per cent of employers in the service and manufacturing industries expressing a positive outlook on hiring. The main reason for this is the changing global investment dynamics and the precautionary measures that businesses are taking.
For candidates who are looking to secure job opportunities in the services sectors, some of the key industries leading the hiring spree are telecommunications (96 per cent), financial services (93 per cent), ecommerce & allied start-ups (89 per cent), retail (87 per cent) and education services (83 per cent). Whereas, for those who are looking to build a promising future in the manufacturing sector, some of the prominent industries are healthcare & pharmaceuticals (91 per cent), FMCG (89 per cent) as well as EV & Infrastructure (73 per cent).
From a sectoral perspective, in metro and tier-1 cities, the hiring intent for services is at (91 per cent) and for the manufacturing sector is at (85 per cent). Tier-1 cities like Delhi (95 per cent) and Mumbai (92 per cent) in services and Mumbai (98 per cent) and Chennai (91 per cent) in manufacturing are thriving mainly across financial services, telecommunications, information technology and manufacturing, engineering & infrastructure, FMCG, healthcare & pharmaceutical respectively. However, rural hiring intentions are the lowest across all geographies and sectors. The services sector, on the other hand, shows a marginal growth of 26 per cent.
As the world is on a massive digitisation spree, the demand for skilled workers has increased to 3 per cent and 2 per cent in Q1 Apr-Jun FY 2023-24 for services and manufacturing, respectively. In contrast, in Q1 Apr-Jun FY 2023-24, the intent to hire for blue-collar job roles decreased by 6 per cent for services and 8 per cent for manufacturing, while the engineering function increased slightly. Companies are also focusing more on digital marketing strategies in order to adapt to changing consumer behaviour.
Looking at the current 5G rollout, adoption and increasing number of use cases, the telecommunications sector in India is seeing an increase in infrastructure investment to meet the growing needs of both local and global clients. As a result, telecom companies plan to invest Rs 2,000 crore in the construction of large hyper-scale data centres, resulting in steady growth and job creation for blue-collar, gig, and grey-collar workers. Additionally, the information technology industry is also looking to establish data centres. While there is demand for traditional non-white-collar jobs in the sector, workforce rationalisation around the world and in India has impacted hiring intentions, informs Mayur Taday, Chief Business Officer, TeamLease Services.
Looking at the attrition trend, the services industry is seeing a low talent retention rate, especially in growth businesses (11 per cent) and mature businesses (15 per cent) whereas the manufacturing industry is observing a positive increment across segments like textile (2.23%), power and energy (6.47 per cent), and manufacturing, engineering & infrastructure (8.14 per cent), the same industries had observed the attrition of 1.22 per cent, 5.63 per cent, and 7.51 respectively in Oct-Dec, 2022.