Job markets showing partial recovery; oil & gas, hospitality, pharma sectors see up to 17% more hiring in Aug: Report

India's job market is displaying signs of recovery, with the Naukri JobSpeak Index reporting a 4 per cent increase in August 2023 compared to July of the same year. The index, which serves as a barometer for white-collar hiring in the country, stood at 2666, reflecting optimism in the employment landscape. However, despite this recent uptick, the index remained 6 per cent lower than August last year.

Several key sectors are driving this positive trend. Notably, the oil and gas, hospitality, and pharma sectors witnessed remarkable growth rates of 17 per cent, 14 per cent , and 12 per cent , respectively, compared to August last year. This growth signals a revival in industries significantly affected by the Covid pandemic.

Hiring for Artificial Intelligence (AI)-related roles is also on the rise, with full-stack AI Scientists and ML engineers experiencing a substantial increase of 24 per cent and 37 per cent, respectively, since the beginning of the year. While the overall hiring in the IT sector grew by 3 per cent as compared to July 2023, it remains 33 per cent lower than the same period last year.

Pawan Goyal, Chief Business Officer of Naukri.com, said: "Jobspeak Index for August 2023 reveals optimistic hiring sentiments being driven by Non-IT sectors such as Oil & Gas, Hospitality, and Pharma. The IT sector also showed positive signs; registering sequential hiring growth after declining for the past few months. This is a healthy indication of normalcy trends returning to the white-collar job market in India."

Sectoral highlights

Oil & gas- The oil & gas sector continued its upward trajectory with 17 per cent  growth in hiring compared to August last year. This growth was particularly prominent in cities like Ahmedabad, Mumbai, Chennai, and Hyderabad, and experienced professionals with over 16 years of experience remained highly sought after.

Hospitality- The hospitality sector aggressively expanded its workforce with a 14 per cent growth in new jobs compared to August last year. This sector's recovery can be attributed to increased spending on business and personal travel. Roles such as restaurant managers, guest services, and facility managers were in high demand.

Pharma- The pharma sector, driven by a renewed focus on research and development, witnessed a 12 per cent growth in hiring compared to August last year. Key roles in demand included clinical research scientists, product managers - pharma, and QC/lab chemists.

Real estate- With new infrastructure projects underway, the real estate sector maintained its positive momentum, experiencing an 8 per cent growth in hiring activity compared to August last year. Professions like construction supervisor, civil engineer, and architect were in high demand.

AI skills in demand

The field of Artificial Intelligence continues to experience a hiring boom, with open job vacancies related to AI functions increasing by 8 per cent  in August compared to July 2023. The most significant jumps were observed for ML engineers and full-stack AI Scientists, followed by data scientists and data analysts. However, demand for Big Data engineers decreased by 12 per cent in August.

Cautious sentiments persist in IT, ITeS

Despite the overall positive trend, the IT industry still lags behind, with new job creation 33 per cent  lower than the previous year. Other sectors, including insurance, auto, healthcare, and BPO, also displayed cautious hiring sentiments, with decline of 19 per cent , 14 per cent , 12 per cent , and 10 per cent , respectively, in new job creation compared to August last year.

Emerging mini-metros

Smaller cities, often referred to as mini-metros, are emerging as hiring hubs. Vadodara led the pack with a 19 per cent growth in new job creation, closely followed by Ahmedabad and Jaipur, with 8 per cent and 5 per cent growth, respectively, compared to August last year. Oil & gas and pharma sectors played a pivotal role in driving job creation in these cities.

Experienced professionals in demand

Experienced professionals with over 16 years of expertise saw a remarkable 45 per cent surge in hiring in August 2023 compared to the previous year. This indicates a strong emphasis on industry knowledge and experience. In contrast, hiring for entry-level professionals decreased by 8 per cent  year-on-year.