According to a survey report, the government of India's Rs 6 lakh crore asset monetisation strategy until 2025, followed by revisions in FDI laws in the defence and telecom sectors, will have a big impact on employment in the current quarter.
India’s job market has been slowly opening up since the pandemic began to show signs of easing, and as a result, India Inc. has seen an increase in job applications. The latest report by TeamLease, a human resource-providing platform, revealed that employers within the manufacturing sector have shown an increase in hiring intent. The survey looked at 301 small, medium, and large companies in India’s nine manufacturing industries.
As per the report, the intent to hire showed a compelling rise of three per cent from 65 per cent to 68 per cent for the current quarter (Jan-Mar 2022-23) compared to the previous quarter (Oct-Dec 2022-23). The surge in hiring intent is amidst the global economic impacts.
Additionally, the report also highlighted that the hiring intent was greater in metro cities (94 percent) as compared to the non-metro ones (73 percent). Mumbai (97 percent), Bengaluru (94 per cent), Chennai (89 percent), Delhi, (84 percent) and Pune (73 percent) were the cities with the highest hiring intent. The rural sector has the least change in intent to hire of +2 per cent but a positive outlook specifies the growth index in this industry.
What aids employment?
It is anticipated that the 8.7 per cent GDP in FY 2021-22, and a surplus of public investments in the Production Linked Incentive (PLI) schemes, are projected to stimulate employment growth. The Government of India’s Rs 6 lakh crore asset monetisation strategy over the four years till 2025, followed by revisions in FDI laws in the defence and telecom sectors, would have a greater influence on employment in the current quarter.
“The global employment rate has increased considerably post the last Covid-19 wave and is poised to grow stronger in the coming quarters. With domestic demand increasing, despite stringent external conditions, the manufacturing industry is projected to witness all-encompassing growth,” said Mahesh Bhatt, Chief Business Officer of TeamLease Services.
He also added that the government’s agenda to drive ‘Make in India’ and the introduction of reforms to boost domestic manufacturing will enable India to become a more attractive destination for investments which in turn will impact employment positively.
Win some, lose some
The report also revealed that the attrition rate is also balanced in the sector. Apart from healthcare & pharmaceuticals, the manufacturing industry has single-digit attrition rates. During the Oct.-Dec. 2022–23 quarter, attrition in the healthcare and pharmaceuticals industry increased to 15.67 percent from 14.71 percent during the Jul.-Sep. 2022–23 quarter.
The other sectors with a hike in attrition were: agriculture and agrochemical (7.51 percent), power and energy (5.63 percent), construction and real estate (4.19 percent), fast-moving consumer durables (4.03 percent), sectors like textile (1.22 percent) and electric vehicle and infrastructure (2.63 percent) sectors faced the lowest attrition trends for the Oct-Dec, 2022-23 quarter.
Domestic demand is a major factor in the hiring intent of large industrial businesses (69%). When compared to large corporations, medium-sized businesses (44%) have more technological and financial capability gaps. Furthermore, the intention to hire has increased by +4%, which is the greatest increase of any metric.
The small business segment is experiencing a drop in hiring intentions, dropping from 41 percent to 39 percent compared to the previous quarter, indicating an uneven post-pandemic recovery.
There is a favourable hiring intent of 55 percent and 60 percent, respectively, for entry-level and junior-level talent opportunities. After the pandemic, upskilling and reskilling activities have had an impact on this segment. The decrease from 29 percent to 27 percent expected for mid-level positions demonstrates a poor hiring intent. Senior-level positions had the lowest hiring intent at 24 percent, indicating that the manufacturing industry is eager to acquire young people.
Sales roles have a staggering 98 per cent hiring intent followed by marketing with 79 percent to 86 percent growth in intent to hire. Both functions are looking forward to building the economy with an increase in young talent supply at hand and maximising the efforts to reach the masses.
Recruitment in the field of information technology with an intention to hire at a rate of 86 per cent is aided by the pervasive desire to innovate and create an environment that is becoming more accessible. Moreover, the rise in hiring intensity is nine per cent, making it the second-highest of all indicators.
Engineering and blue-collar (both at 78 percent and 75 percent respectively) have reasonably robust recruiting intentions. Both these roles have a growth rate of 11 percent and 8 percent, respectively.
The functions with the lowest recruiting intent are office services (31 percent) and human resources (18 percent), both of which have a better presence in the services sector than in the manufacturing business.