The Indian job market has been shaken recently due to an unprecedented wave of employee layoffs. As a result, companies, particularly in the technology sector, had to let go of tens of thousands of underperforming employees. However, there is good news for all jobseekers in India as the Indian IT sector will soon resume hiring activities after a period of decline or stagnation.
According to a report by Naukri JobSpeak, India’s IT sector is experiencing a positive resurgence as hiring rates increased by 9% sequentially in February 2023. This growth is noteworthy considering the current global economic climate, where numerous layoffs occur, especially in the tech sector.
The report further reveals that India’s IT firms recorded a notable 10% month-over-month increase in job openings in February. This promising development is a beacon of hope for those seeking employment in the technology industry.
Hiring Process Resumes in India’s IT Sector
Amidst the troubling wave of widespread layoffs, a glimmer of hope has emerged for job seekers as the Indian IT sector resumes its hiring process.
Despite this positive trend, it is uncertain whether it will continue, as the wave of layoffs is ongoing in the US Job market.
Furthermore, the report suggests that there will be ongoing layoffs in the US, which will significantly impact India’s job market.
Interestingly, technology-specific roles have recently experienced a notable uptick in demand in the Indian job market. For example, the demand for jobs such as analytics managers, big data engineers, cloud system administrators, and augmented reality QA testers grew 29%, 25%, 21%, and 20%, respectively.
In particular, the demand for DevOps and DevSec engineers has increased by 19% and 18%, respectively, outshining the need for data scientists and software developers, which have only seen a rise of 17% and 11%, respectively.
These numbers signal a shift towards more specialized roles in the tech industry, with companies increasingly seeking experts in specific areas to stay ahead of the curve.
The job market thrives in several sectors, with real estate, hospitality, and healthcare experiencing a remarkable surge in new job opportunities. In February, these sectors saw double-digit sequential growth, with a 13% rise in real estate and a 10% increase in hospitality and healthcare.
Meanwhile, banking, BPO, and Retail sectors also demonstrated robust growth, with a 9% rise in new jobs in banking, and a 7% growth in both BPO and Retail sectors, compared to the previous month.
“The IT sector, which had been experiencing negative trends in the past three months, showed a sequential growth of 10%. This growth is an indicator of changing hiring sentiments within the IT space,” declared Pawan Goyal, the Chief Business Officer at Naukri.com.
Tech Layoffs In India
As we enter 2023, the global job market has already suffered a daily average of over 2,700 layoffs. Data indicates that over 1.53 lakh people have been affected thus far. Those who have held onto their jobs have been subject to pay cuts or a freeze in salary hikes. Furthermore, new hires are facing obstacles with onboarding delays. The looming threat of macroeconomic risks and a potential recession pose a significant challenge to the job market’s recovery this layoff season.
Recent massive layoffs by key giants, including Meta, Google, Amazon, and Microsoft, have shaken the IT sector. Meta’s 11,000 and Google’s 12,000 jobs cut were unexpected, given that these are the world’s most valuable technology companies. Microsoft also let go of 10,000 employees, while e-commerce giant Amazon laid off 18,000 workers. Even Tesla’s CEO Elon Musk, who took charge of Twitter last year, fired a significant number of employees. Dell Technologies also contributed to the mass job cuts trend, releasing 6,650 employees.
The wave of layoffs doesn’t stop here!
Major companies such as Facebook, Ericsson, and McKinsey have announced plans to cut thousands of jobs, adding to the uncertainty for job seekers. In addition, reports suggest that Amazon may cut employee salaries by 50% in 2023, and Google is asking employees to share desks. Meanwhile, many employees are still waiting to onboard after months of being hired.
Furthermore, TCS, Infosys, Wipro, and HCLTech, these tech giants in India, only hired 1,940 employees collectively in Q3 of FY23, a 93% decrease from the previous quarter. This decline is attributed to cautious demand and challenging North America and Europe market conditions.
The technology industry’s current state is reflected in the latest data from Trueup.io, a platform that monitors tech layoffs. Shockingly, the data shows that as of 2023, there have already been 534 layoffs at tech companies, resulting in the impact of 153,005 individuals (approximately 2,732 people per day).
Regarding hiring activity, the top metros, including Chennai, Hyderabad, Bengaluru, and Pune, witnessed double-digit growth. Additionally, the emerging cities of Coimbatore and Chandigarh saw a significant uptick in new job opportunities, indicating a promising future for job seekers in these areas.
The Indian IT sector’s recent resurgence in hiring is a positive development for the industry, indicating a steady recovery from the economic downturn caused by the pandemic. Moreover, with the increased demand for digital services and technology solutions, the sector is poised for growth and presents exciting opportunities for job seekers.
The future looks promising for the Indian IT industry, and we can remain hopeful for continued growth and success in the coming years.