According to the latest ManpowerGroup Employment Outlook Survey by ManpowerGroup India, employers across India expect a hiring recovery in Q4.
Many firms aim to increase their headcounts by the end of the year, according to a poll of 3046 employers, as economic constraints relax and demand products and services rise.
Hiring in the Services, Manufacturing and Finance, Insurance and Real Estate sectors improved quarter-over-quarter and laid out optimistic guidance. 90% of the employers responded that they found at least some difficulty in filling vacancies. At the same time, many employers are facing issues in offering training and skills development, and more flexibility in work schedules and location.
Employers in large organizations gave optimistic outlooks with 48% looking to hire new employees in the fourth quarter compared to 38% in small companies having less than ten employees.
Employers in Western India have the most hiring plans for the fourth quarter, followed by the East, North, and South of India.
Around 20% of businesses have reported a personnel reduction, while 15% predict no change. In the December quarter, only 1% of firms were unclear about hiring attitudes, compared to 44% in the July-September period.
Net employment outlook calculated as the difference between companies planning to engage in staffing and fall in a total number of employees, stood at 44 per cent, whereas it was 5 per cent in the July-September quarter.
Hiring sentiment marked an improvement by 37 percentage points corresponding to the previous quarter and by 40 percentage points compared to the same quarter a year ago.
“Corporate India is showing healthy signs of recovery and overall positive sentiment is gripping the market. Many of the deep-rooted structural factors that have sustained the Indian economy over the years like geopolitical stability, diversified economy, demography, etc, are likely to play a pivotal role in the new normal,” said Sandeep Gulati, Group Managing Director of ManpowerGroup India.
“Vaccine rollouts gaining tremendous momentum with most of corporate India due for the second vaccine coupled with the onset of the festive season may be the probable cause of the spike in optimism. The intent into action, however, needs to be observed considering the fear of the third wave and the continued talent shortage that most industries are finding difficult to bridge,” he added
Hiring Plans by Region And Industry
In all four regions, Employers see growth in payrolls during the fourth quarter of 2021.
The West has shown the strongest hiring pace in staffing, and its Net Employment Outlook stands at +49%. Dynamic hiring activity in the East and the North is expected to be +45% and +43%, respectively, while the Outlook for the South is +37%.
When compared to the previous quarter, hiring prospects have improved in all four regions.
During the coming quarter, all seven industry sectors are expected to see a rise in payrolls. Employers in the services industry are the most likely to hire, with a Net Employment Outlook of 50%.
Mining & Construction sector employers gave an outlook of +34%, indicating active hiring. On the other hand, the Wholesale & Retail Trade sector outlook summed at +33%. In the Transportation & utility sector, employers expect to see a rise in parole with an outlook of +28%, and the Public Administration & Education sector stood at +24% reflecting healthy hiring plans.