Corporate India sees 7% decline in hiring activity in May, report shows

India Inc.'s hiring activity declined by 7 per cent in the month of May compared to the same month last year, a report by  Foundit (formerly Monster APAC & ME) detailed on Thursday.

According to the report, the hiring activity took a hit as companies remained cautious in adding to their payrolls due to the ongoing macroeconomic uncertainty and global headwinds. However, despite the general decline, positive trends were seen in tier-2 cities like Ahmedabad and Jaipur, the report added.

The report also stated that hiring activity is declining across all industries, with a 4 per cent month-over-month (MoM) decline and this is due to several factors. One of them is India's economic slowdown, which has forced companies to cut expenses, including hiring efforts, it further added.

There is a significant skills gap that has further complicated employers' hiring process by making it challenging to locate qualified candidates along with that the ongoing technological disruption is changing industries and leading to job changes,  impacting hiring activity in general, the report explained.

"The hiring environment may remain challenging in the near future, as the economy strengthens, we anticipate a surge in hiring across industries. Also, it is crucial for job seekers to be adaptable to this shifting labour market. The skills in demand today may not remain relevant in the future, emphasizing the importance of continuous learning and acquiring new skills,” said Sekhar Garisa, CEO - foundit (previously Monster APAC & ME), a Quess company.

Amidst these challenges, there are pockets of growth that offer opportunities for job seekers, Garisa added and said, "Increased hiring in Tier 2 cities and specific industries like Shipping/Marine, Advertising, MR, PR, Retail, and Travel and Tourism demonstrate resilience."

Sectors of growth

The report highlights nine sectors that have showed increased e-recruitment activity from the previous year. The shipping/marine industry has displayed an impressive YoY growth rate of 45 per cent, reflecting a thriving sector triggered by increased port capacity, advanced technological implementation, and environmental sustainability initiatives, according to Quess company.

Advertising, MR, and PR industries have also experienced a significant recovery, with a 28 per cent increase in recruitment activity. Interestingly, Ahmedabad has emerged a rising hub for media, advertising, and PR opportunities. The retail, and travel & tourism sectors have also shown growth, both with a 27 per cent increase compared to the previous year. Additionally, the office equipment/automation sector has demonstrated modest growth of 4 per cent. The numbers definitively show the tremendous opportunities that exist in these sectors, the report added.

Furthermore, the HR & admin roles saw an increase of 8 per cent, indicating a rise in the demand for experts in the field. This was particularly noticeable in the IT industry, indicating future employment opportunities, the report noted.