Hiring activity in India recovered significantly by 24% in September compared to a month ago, according to the Naukri JobSpeak Index.
The index for September at 1755 marks an improvement of 24% in hiring activity as compared to August at 1413, the leading jobs portal said in a press release.
The growth is driven by industries such as pharma (+44%), FMCG (+43%), Education/Teaching (+41%), and IT (+32%). The gradual lifting of lockdown restrictions and increased mobility have led to an improvement in hiring activities in industries like real estate (+44%), auto/ancillary (+29%), and hospitality/travel (+48%). Other industries such as BPO/ITES (+29%) and banking/financial services (+33%) also posted robust growth sequentially.
“The last quarter has seen a significant uptick in the hiring activity, growing at 14% compared to 8% decline in April-June,” said Pawan Goyal, Chief Business Officer, Naukri.com.
However, the hiring activity in the month of September declined by 23% versus last year. But the declining trajectory has become less steep with improvement in every subsequent month.
“While the hiring is yet to touch last year levels and is down by 23% in September 2020 versus September 2019 but this is also a marked recovery from a 35%-60% decline that we have witnessed in the last few months,” said Goyal.
“Businesses that are leveraging digital channels for dissemination and consumption of goods and services are thriving and will continue to do so as we imbibe social distancing norms in our daily lives,” he added. “With increased mobility and focus on health, we are hopeful that hiring activity will further improve in sectors like travel, hospitality, medical/ healthcare, insurance, and financial services.”
Metros that were reeling under various lockdown measures earlier have posted strong double-digit growth in the month of September compared to August with Pune (+26%) leading the pack followed by Hyderabad and Chennai (+24%) while Bangalore is lagging with a 14% growth. Tier-2 cities like Ahmedabad (34%), Chandigarh (+39%), and Jaipur (36%) have also seen a significant uptick in the hiring activities. Hiring grew across the board in terms of experience bands with the demand for mid-management professionals (8-12 years) up by 27% followed by 0-3 years (25%), 4-7 years (23%), 13-16 years (24%) and greater than 16 years’ experience by 19%.
Year-on-year growth rates turned positive in certain industries like IT-Hardware and Networking (+26%) and chemical/petrochemicals (+14%) in September versus last year. Also, industries such as pharma/biotech (-4%), insurance (-6%), and FMCG (-11%) are on the verge of turning positive if the recovery continues in subsequent months, said the release.
However, despite the monthly recovery, on a Y-O-Y basis hospitality/travel (-71%) and retail (-50%), oil & gas/power (-45%), accounting/taxation/finance (-34%) and IT-software (-32%) sectors continue to be the most impacted.
Similarly, hiring in metros continued to decline more than the national average (30% vs 23%) versus September 2019 with Mumbai (-35%), Delhi NCR (-33%), and Bengaluru (-33%) leading the decline while Jaipur (13%) and Chandigarh (11%) have turned positive. Recruitment across the board declined at varying experience levels with the entry-level experience bands (0 to 3 years) witnessing the sharpest decline of 29% while the leadership roles (greater than 16 years) saw the least impact and declined by 15% in September as compared to last year same time.