Hiring intentions weak in manufacturing, services; employer confidence dips
A survey conducted by ManpowerGroup revealed that Indian employers expect hiring to remain steady in July-September time frame however employer confidence has been its lowest since 2005.
Key highlights
- Hiring intent in manufacturing and service sectors is the lowest among others for July-September period.
- Employer confidence has dipped to its lowest in Q3 CY17 since 2005.
- Prospects of taking on new recruits have been lower in seven industry sectors compared with the same time last year.
Hiring intentions in certain sectors including manufacturing and services has dropped 6 percentage points, as a survey conducted by ManpowerGroup revealed on Tuesday.
The report by ManpowerGroup Employment Outlook Survey showed employer confidence in the third quarter of FY18 at its least optimistic since 2005.
“When compared with the previous quarter, hiring intentions weaken in four of the six industry sectors, most notably by 6 percentage points in both the Manufacturing sector and the Services sector,” the report said.
The survey was conducted on a total of 4,910 employers across India and indicated that the hiring activity is expected to slow for the sixth consecutive quarter.
“In the wake of uncertainties in global markets, employers in India are adopting a wait-and-watch policy. This is probably the reason we are not seeing them commit to the same optimistic hiring plans,”AG Rao, Group Managing Director of ManpowerGroup India said.
Image Source: Manpower Group report
“Hiring prospects decline in all seven industry sectors when compared with this time one year ago. Sharp decreases of 28 and 26 percentage points are reported in the Services sector and the Manufacturing sector, respectively, while the Outlook for the Finance, Insurance & Real Estate sector is 24 percentage points weaker,” the report addeds.
It isn’t all gloomy in the seven sectors, as the report said employers are expected to increase staffing levels during July-September.
“The strongest labour markets are forecast in the Wholesale & Retail Trade sector where the Net Employment Outlook is +20%, and in the Public Administration & Education sector with an Outlook of +19%. Elsewhere, employers report favourable hiring prospects in the Transportation & Utilities sector and the Services sector, with Outlooks of +16% and +15%, respectively,” the report added.
India ranked among the likes of Turkey and Mexico globally with an over 14% intent to hire new recruits in Q3 of this calendar year.
The strongest labour market is speculated to be south India with over 21% employment outlook followed by the north at 15%.
“In the current situation, technology has restructured the way the world functions and organisations are embracing these technologies based on changing business requirements. It is important for Indian employers to redefine their workforce strategies and adopt innovative ways to leverage the strength of their employees and stay competitive in an increasingly volatile economy,” Rao added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.