The world has been going through a tough phase with massive job cuts in the IT industry. Despite ongoing recessionary concerns and layoffs making headlines, India’s hiring outlook for the second quarter of 2023 remains relatively stable. According to a report by ManpowerGroup, the net employment outlook for Q2 2023 is reported to be at 30%, down from 8% YoY and 2% QoQ.
The net employment outlook is determined by deducting the number of employers who do not intend to hire or replace staff from the number of those who plan to recruit.
Companies are slowly and steadily coming back to normal.
According to the Employment Outlook survey, employers across all four regions are anticipating an increase in their payrolls in Q2 2023. At over 34%, the West region in India appears to have the most optimistic hiring intentions, followed by the North with over 33%. In contrast, the South and East regions are projected to show the least optimistic outlooks, with over 27% and 20%, respectively.
It is important to note that hiring intentions also vary depending on the size of the company. For instance, larger organizations seem to have a more positive outlook for hiring, with a Net Employment Outlook of 40%. In comparison, small organizations will have an outlook of 26%, and medium-sized organizations will report an outlook of 25%.
However, when compared to the same period last year, there is an overall decline in the employment outlook across all industry sizes. The highest decline was seen in micro organizations, which experienced a decrease of -13%, followed by medium-sized organizations, which experienced a decrease of -10%.
When considering different sectors, the IT industry appears to have the strongest hiring intentions, with a net employment outlook of over 38%. This is followed closely by the Financial and Real Estate sector, which is reported to have a net employment outlook of over 37%. The Industrials & Materials sector is expected to show an employment outlook of over 31%.
Surprisingly, the Communication Services sector is expected to report the weakest employment outlook of +15%.
Hiring Outlook FY Q2 2023: Key Findings
- The demand for new employees remains strong for the second quarter of 2023. However, every four out of five, or 80% of all, employers are said to be struggling to find the right talent.
- India’s talent shortage will decline 3% YoY in 2023 from 83% in 2022.
- The sectors that are experiencing the most significant challenges in finding the required talent are information technology (81%), consumer goods and services (81%), health care & life sciences (80%), financials and real estate (80%), and energy and utilities (80%), according to the employers.
- According to organizations, the technical skills that are in the highest demand include IT & data (37%), sales & marketing (30%), and engineering (29%).
- In terms of soft skills, Creativity & Originality (37%), Critical Thinking & Analysis (35%), Leadership and Social Influence (32%), Reasoning & Problem-solving (30%), Active Learning & Curiosity (30%), and Reliability & Self-discipline (29%) are the most sought-after.
Despite the global economic pressures, India has demonstrated its ability to withstand them consistently, although the skill gap remains a concern. India’s economy is stable, with a healthy GDP growth rate and exceptional demographics worldwide.
Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, stated that the Indian government’s significant investments in infrastructure and efforts to improve connectivity between states have positively influenced employment prospects.
However, the shortage of individuals with the necessary technical and soft skills poses significant challenges to employers in meeting their talent requirements. Therefore, the management must prioritize investing in upskilling and reskilling initiatives to prepare individuals for tomorrow’s jobs.
ManpowerGroup’s strong appetite for hiring in the second quarter, despite layoffs, suggests that the global job market is slowly but surely recovering from the pandemic’s impact. Companies are beginning to feel more confident in their financial positions, and as a result, they are investing in their workforce to prepare for the post-pandemic future.
However, it is crucial to note that the recovery is not uniform across industries and regions, and the effects of the pandemic may linger in some sectors for some time. Therefore, it is important to continue monitoring the job market’s progress and adapting to changing circumstances to ensure sustained growth and economic stability.