India experienced a remarkable 7.8 per cent surge in GDP during the first quarter of the fiscal year 2023-24 (Q1 FY24). This robust GDP growth underscores a potent economic rebound, driving the acceleration in incremental hiring across the nation.
Reflecting the dynamic shifts in India’s economic terrain, the trend of incremental workforce expansion has exhibited an encouraging surge –79 per cent of employers are going to either sustain or expand their workforce size in the forthcoming half-year period of Oct-Mar, HY 2023-24.
Consumer and retail companies will see a resurgence in Q4 from muted demand in semi-urban and rural areas in the festive season in Q3. While there is a positive sentiment for the financial services sector, cautious moves are observed from banks, NBFCs and Fintechs with increased regulatory pressure from the RBI on lending norms for riskier credits.
Factors impacting employment
Economic conditions significantly impact the employment environment, as cited by 69 per cent of respondents. Furthermore, business growth or expansion is a significant factor, as mentioned by 53 per cent of respondents. As a result of the government and private sector encouragement of entrepreneurship, India is poised to witness an increase in employment opportunities, the report added.
According to 31 per cent of respondents, skill shortages and mismatches between available skilled personnel and job requirements can have a significant impact on hiring. Additionally, 19 per cent of respondents concur that technological advancements are a key factor in determining employment opportunities in India, the report said.
The report further highlighted that another 15 per cent of respondents believe that changes in policy, such as labour laws and regulations, taxation, investment incentives, industrial regularisations, and global trade dynamics, will significantly influence employment trends in India.
Business growth sentiment
Business sentiment remains positive and upbeat with 67 per cent of the respondents predicting business growth during the October-March 2023-24 half year. This implies that, as the festive season enters its final phase, hiring will continue to accelerate. About 84 per cent of the employers surveyed plan to hire to meet the growing demand over the forthcoming half year, revealed the report.
Interestingly, while new-hiring is likely to be robust (at 79 per cent), replacement hiring is happening at a rapid pace (74 per cent) as well, implying a flourishing employment landscape.
The report further added that with technological advancements and the governments’ efforts towards a Digital India, demand for technology roles in non-technical organisations is booming, especially in the Construction, Retail, and Hospitality industries. Overall, a cheerful mood persists across the Indian hiring landscape.
