Hiring intention up 10% for services, manufacturing sector in first quarter of FY24: Report

The outlook for mid-level employees in the services sector is at 54 per cent and 32 per cent in manufacturing. Moreover, close to 64 per cent of employers, compared to 54 per cent in Q1-2022, are keen to increase their resource pool across industries, the TeamLease report stated.

Across the two quarters and sizes of companies, the report stated that the services sector has higher levels of hiring intent as compared to the manufacturing sector.

TeamLease CEO Kartik Narayan said, “Industries around the world, including those in India, have been severely affected by the current global unrest, which has resulted in large-scale layoffs, a hiring freeze, and an imminent economic downturn. Despite this, hiring prospects in India have continued to improve over the past year, with 64% of employers in the service and manufacturing industries expressing a positive outlook on hiring. The main reason for this is the changing global investment dynamics and the precautionary measures that businesses are taking.”

In the services sector, key industries that are leading the hiring spree are telecommunications at 96 per cent; financial services at 93 per cent; ecommerce and allied start-ups at 89 per cent; retail at 87 per cent; and education services at 83 per cent.

Meanwhile, in the manufacturing sector, healthcare and pharma companies are leading the hiring spree at 91 per cent, followed by FMCG at 89 per cent, and EV and infrastructure at 73 per cent, the employment outlook report stated.

“Looking at the current 5G rollout, adoption and increasing number of use cases, the telecommunications sector in India is seeing an increase in infrastructure investment to meet the growing needs of both local and global clients. As a result, telecom companies plan to invest Rs 2,000 crore in the construction of large hyper-scale data centres, resulting in steady growth and job creation for blue-collar, gig, and grey-collar workers. Additionally, the information technology industry is also looking to establish data centres,” Mayur Taday, Chief Business Officer, TeamLease Services said.

The report also stated that the hiring intent in Metro and Tier-1 cities in the services and manufacturing sectors is 91 per cent and 85 per cent, respectively.

In rural areas, the hiring intention is the lowest across all geographies and sectors in Q1 FY24. However, the services sector shows a marginal growth of 26 per cent in the first quarter of FY24, the report stated.