June 11th 2024.
According to a recent global survey conducted by the workforce solutions company ManpowerGroup, India has been ranked sixth in terms of employment outlook for the next quarter of 2024. This means that 30% of businesses in the country are planning to increase their staff in the next three months. However, this number has decreased by 6% compared to the previous quarter and the same time last year, indicating a cautious approach from employers when it comes to hiring.
The Net Employment Outlook (NEO) for India, which is calculated by subtracting employers who plan to reduce their staff from those who plan to hire, stands at 30%. This is 8 points higher than the global average and the survey was conducted in 42 countries. In the global rankings, Costa Rica has reported the strongest hiring expectation for the July-September quarter at 35%, followed by Switzerland, Guatemala, Mexico, and South Africa. On the other hand, Argentina and Romania have reported the weakest NEO at only 3%.
In the Asia Pacific region, India has the strongest employment outlook, closely followed by China. However, employers in Hong Kong and Japan have reported the most cautious outlooks. The survey, which asked 3,150 employers in India about their hiring intentions for the third quarter, also highlighted the impact of the global slowdown on the IT sector in the country. This, coupled with the political uncertainty due to general elections, has led to a cautious approach from employers in terms of short-term resource planning.
While the IT sector has been facing challenges, the real estate sector has seen an increase in investor interest, with a capital inflow of USD 1.1 billion primarily in the residential sector. ManpowerGroup's India and Middle East Managing Director, Sandeep Gulati, believes that a strategic long-term talent planning approach, such as hiring, training, and deploying, can help bridge the gap between the demand for specific skills and its supply.
The survey also revealed that the hiring intentions in North India are the strongest at 36%, followed by West, South, and East. However, when compared to the same period last year, hiring sentiments have declined across all sectors. In terms of industry size, large organizations have shown the most optimism in hiring with a NEO of 42%, followed by small and medium organizations, and large enterprises.
The financial and real estate sector, as well as the healthcare and life sciences sector, continue to dominate the market with the strongest hiring intentions. On the other hand, the weakest outlook is seen in the communication services and transport, logistics, and automotive sectors. Interestingly, more than 62% of employers have adopted AI, including generative conversational AI, with 80% of the senior leadership team optimistic about its positive impact on overall business, compared to 68% of frontline and factory workers.
Contrary to popular belief, the survey also revealed that almost 68% of employers are planning to increase their headcount in the next 2 years due to the adoption of AI and Machine Learning. This is primarily led by the communication services sector, financial and real estate sector, industrials and materials, and information technology. Overall, the survey highlights the current employment outlook in India and the various factors that are influencing it.
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