Source | The Economic Times : By Sreeradha Basu
MUMBAI: Opportunities for job seekers in the country are expected to be less bright in the April-June quarter than they were a year ago as Indian companies grapple with increasing technology automation, global business uncertainties, and a scarcity of talent for niche skills.
Only 19% of the 4,389 Indian employers participating in the ManpowerGroup Employment Outlook Survey Q2 2017 said they planned to increase staffing. About 1% planned to decrease and 68% expected no change, resulting in a net employment outlook of +18%.
By contrast, the gauge in the January March 2017 quarter was +21%, while the corresponding figure for April-June 2016 was +38%. After the latest survey, India’s net employment outlook has now trended lower for five consecutive quarters, according to the Manpower survey. Globally, however, employers in only three other countries — Taiwan, Japan and Slovenia — of the 43 surveyed report more optimistic second-quarter hiring plans than those in India.
“The hiring outlook will move at a slow, but steady pace,” said AG Rao, group managing director of ManpowerGroup India. “Despite the market volatilities, India’s macroeconomic fundamentals have improved due to a combination of various initiatives focused on job creation and skill development, with a continuing emphasis on ease of doing business.”
Workforce gains are anticipated in all seven industry sectors during the coming quarter. The strongest hiring prospects are reported in the services sector, where employers report a net employment outlook of +22%, followed by the public administration and education sector and the wholesale and retail trade sector at +21%.
Manufacturers expect steady payroll gains, reporting an outlook of +16%, while growth of +15% is likely for the finance, insurance & real estate sector and mining & construction. Meanwhile, transportation and utilities employers report the most cautious outlook of +10%.
Hiring intentions weaken in six of the seven industry sectors when compared with Q1 2017, with the transportation and utilities sector showing the steepest decline of 9 percentage points. The outlooks are 7 and 6 percentage points weaker in the mining and construction sector and the manufacturing sector, respectively.