Hiring Slows Down by 7% Overall, but Tier 2 Cities Show Resilience: foundit Insights Tracker

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Hiring Slows Down- foundit Insights Tracker
Hiring Slows Down by 7% Overall, but Tier 2 Cities Show Resilience: foundit Insights Tracker

Mumbai, June 08, 2023foundit (formerly Monster APAC & ME), one of India’s leading talent platforms, released foundit Insights Tracker (fIT), presenting the latest findings on monthly hiring trends. The latest tracker indicates a 7% slowdown in hiring compared to the same time last year. However, despite the general decline, positive trends were seen in tier-2 cities like Ahmedabad and Jaipur. 

The tracker indicates that hiring activity is declining across all industries, with a 4% month-over-month (MoM) decline. This decline can be attributed to several factors. One of them is India’s economic slowdown, which has forced companies to cut expenses, including hiring efforts. The significant skills gap in the nation has also complicated employers’ hiring process by making it challenging to locate qualified candidates. Furthermore, the ongoing technological disruption is changing industries and leading to job changes,  impacting hiring activity in general.

Commenting on job trends for May 2023, Sekhar Garisa, CEO – foundit (previously Monster APAC & ME), a Quess company, said, “The current hiring trend reflects the challenges faced by India’s job market. However, amidst these challenges, there are pockets of growth that offer opportunities for job seekers. Increased hiring in Tier 2 cities and specific industries like Shipping/Marine, Advertising, MR, PR, Retail, and Travel and Tourism demonstrate resilience. Although the hiring environment may remain challenging in the near future, as the economy strengthens, we anticipate a surge in hiring across industries. Also, it is crucial for job seekers to be adaptable to this shifting labour market. The skills in demand today may not remain relevant in the future, emphasizing the importance of continuous learning and acquiring new skills.”

Shipping/Marine Industry Sets Sail with Impressive Year-on-Year Growth

Of the 27 industries the tracker examined, 9 sectors showed increased e-recruitment activity from the previous year. The Shipping/Marine industry has displayed an impressive YoY growth rate of 45%, reflecting a thriving sector triggered by increased port capacity, advanced technological implementation, and environmental sustainability initiatives. Similarly, , due to its data-driven strategies and emerging advertising trends, the Advertising, MR, and PR industries experienced a significant recovery, with a notable 28% increase in recruitment activity. The Retail, and Travel & Tourism sectors have also shown consistent strong growth, both with a  27% increase compared to the previous year. Additionally, the Office Equipment/Automation sector has demonstrated modest growth of 4%. The numbers definitively show the tremendous opportunities that exist in these sectors.

However, certain industries have faced challenges in terms of hiring. The BFSI sector, which encompasses banking, financial services, and insurance, has experienced a decline of 10% YoY. This dip may be attributed to the headwinds faced by the global economy, such as rising inflation, interest rates, and supply chain disruptions. Similarly, the Automotive/Ancillaries/Tyres industry has also faced a downturn, showing an 11% decline. The Engineering/Construction and Production/Manufacturing sectors have witnessed declines of 14% and 16% respectively, indicating a sluggish hiring environment in these industries. The FMCG, Food & Packaged Food industry has maintained stability, with no significant change. The BPO/ITES sector has faced challenges with a decline of 17% year-on-year (YoY).

Positive Hiring Trends in Ahmedabad and Jaipur, Bangalore Witnessing Hiring Setback

Ahmedabad stands out among the cities that are seeing an increase in hiring, with a spectacular YoY gain of 8%. The city had considerable growth in several important industries, including a remarkable 109% rise in the media and entertainment industry and an impressive 88% growth in Advertising, MR, and PR. These optimistic numbers can be attributed to favourable market conditions and increased economic activity in Ahmedabad. Similarly, Jaipur also demonstrated a marginal YoY growth of 1% as hiring continues to expand steadily in the tier-2 market despite experiencing sporadic swings. The city’s healthy consumer retail market has shown a notable growth of 52%. In addition, the Travel and Tourism industry saw a noteworthy YoY rise of 15%, underscoring the city’s allure as a travel destination.

However, several major cities have experienced declines in hiring. Bangalore, a prominent hub for the IT industry, experienced a significant YoY decline of 24%. This fall may be attributed to multiple factors, including the rapid automation that is replacing jobs in various industries, including the IT sector. Similarly, Delhi/NCR, Mumbai, Pune, and Hyderabad also saw significant YoY declines ranging from 9% to 16%, underscoring the difficulties faced in the job market in these areas.

Among the other cities, Chandigarh, Kolkata, Vadodara, and Kochi also experienced a decline in hiring, albeit to a lesser extent. Vadodara saw a YoY decline of 7%, while Coimbatore and Kochi experienced a marginal 2% YoY decline. On the other hand, Kolkata experienced a significant YoY decline of 16% despite a noteworthy MoM increase of 7%.

HR & Admin Sector Sees Promising Growth Amidst Overall Slowdown

Among the 13 job categories monitored by the tracker, three categories experienced an increase in demand compared to the previous year. The HR & Admin roles saw an increase of 8%, indicating a rise in the demand for experts in this field. This was particularly noticeable in the IT industry, indicating future employment opportunities.

Sales & BD, and Hospitality & Travel categories experienced a slight increase of 1% in e-recruitment. Despite their modest growth, these roles still mantained a steady demand for professionals.

In contrast, the Finance & Accounts category saw a 3% decline in demand, indicating a downward trend in e-recruitment for professionals in this industry. The  software, hardware, and telecom categories experienced a significant decline of 21%, showing a notable decline in the demand for tech professionals. The category for customer service experienced the largest decline of 33%, caused by a sharp decline in the demand for customer service professionals.