For the April-June quarter, opportunities for job seekers are expected to be considerably weaker than previous year as the Indian companies gauge the impact of the ongoing global slowdown compounded by automation in the IT sector and talent scarcity for niche skills.
According to the ManpowerGroup Employment Outlook Survey, only 19 per cent of the 4,389 Indian employers said they planned to increase staffing. About one per cent planned to decrease and 68 per cent expected no change, resulting in a net employment outlook of +18 per cent.
The hiring activity is expected to remain steady says the survey with employers in only three other countries report more optimistic second-quarter hiring plans than those in India. However, India’s Net Employment Outlook has now dipped by varying margins for five consecutive quarters.
The hiring outlook will move at a slow but steady pace. AG Rao, Group Managing Director of ManpowerGroup India said, “The hiring activity is expected to remain steady, however, there will be great demand for high-skill jobs for the new positions created by automation.”
Since the companies are adopting artificial intelligence and best utilising technology to drive innovation, therefore job-seekers need to up-skill and diversify into new areas. “Skills adjacency, agility and learnability — all of these characteristics are crucial to demonstrating the desire and ability to learn new skills to become and stay employable throughout long career journeys,” added Rao.
The strongest hiring prospects are reported in the services sector where employers report a Net Employment Outlook of +22 per cent. Healthy hiring activity is also forecast by employers in the public administration, education sector and the wholesale and retail trade sector.
Manufacturing sector employers expect steady payroll gains, reporting an Outlook of +16 per cent, while Outlooks of +15 per cent are reported in both the Finance, Insurance & Real Estate sector and the Mining & Construction sector. Meanwhile, Transportation & Utilities sector employers report the most cautious Outlook of +10%.
Hiring intentions weaken in six of the seven industry sectors when compared with 1Q 2017. Transportation and utilities sector employers report the most noteworthy decline of 9 percentage points, while Outlooks are 7 and 6 percentage points weaker in the mining and construction sector and the manufacturing sector, respectively. However, employers in the wholesale and retail trade sector report no quarter-over-quarter change.
When compared with this time one year ago, Outlooks decline in all seven industry sectors. Sharp declines of 27 and 24 percentage points are reported in the Manufacturing sector and the mining and construction sector, respectively, while the Outlook for the Transportation & Utilities sector is 21 percentage points weaker. Services sector employers report a decrease of 19 percentage points and Outlooks decline by 17 and 14 percentage points in the Finance, Insurance & Real Estate sector and the Wholesale & Retail Trade sector, respectively.
Employers in all four regions anticipate an increase in staffing levels during 2Q 2017, with the strongest labor market forecast for the South, where the Net Employment Outlook is +29 per cent. Elsewhere, steady payroll gains are expected in the North and the West, with Outlooks of +18 per cent and +15 per cent, respectively, while the Outlook for the East stands at +12 per cent.
When compared with the previous quarter, Outlooks decline by 5 percentage points in both the North and the East, while employers in the West report a decrease of 4 percentage points. Meanwhile, employers in the South report relatively stable hiring intentions.