- On a month on month comparison most key sectors and functional areas have witnessed dips in their hiring activity in Jul-11 over Jun-11
- The Telecom sector, however has shown an uptrend in hiring activity as the index moved up by 8% in Jul-11 as compared to Jun-11
- Steady hiring activity was witnessed among senior professionals with over 16 years experience
After witnessing a vibrant employment scenario in the first half of 2011, July saw some slackening in hiring activity. The job index for Jul-11 is 6% lower than the Jun-11 index, but 10% higher than the Jul-10 index. This clearly indicates that although hiring may be lower in Jul-11 as compared to the previous month, the overall jobs created in the month are higher than last year. The three month moving average indices also indicate steady hiring levels in Jul-11 when compared to Jun-11.
“Concerns of a global economic crunch and rising inflationary pressures are acting as a caution sign for India Inc. Therefore recruiters of some sectors are on a wait and watch mode. This does not mean that companies have frozen hiring, but they are certainly not going overboard. While there is some caution in the near term, medium term indicators for hiring remain positive which was even reflected in the hiring outlook survey where 78% recruiters said that new jobs will be created in the second half of 2011 “said Hitesh Oberoi, Managing Director and CEO, Info Edge India
Industry Sector Analysis:
An in-depth analysis of the job index shows that Banking Auto and Pharma sectors maintained steady hiring levels in Jul-11 when compared to Jun-11. Among the key industry sectors, hiring activity has been upbeat for the Telecom sector where the index moved up by 8% in Jul-11 over Jun-11. ITES, Construction and IT sectors on the other hand witnessed 24%, 14% and 11% dips in their indices in Jul-11 when compared to Jun-11. However, when we look at a year on year perspective then Banking, Auto and IT- Software sectors witnessed 30%, 27% and 16% upward movement in their indices in Jul-11 as compared to Jul-10.
Functional Area Analysis:
A month on month analysis of key functional areas shows that the demand for professionals in Production, HR and Marketing has been steady. Mirroring trends of the IT- Software and ITES sector, Software and BPO professionals saw their hiring activity dip by 10% and 17% respectively in Jul-11 over Jun-11. The demand for Project Management and Accounts professionals dipped by 5% and 6% respectively when compared with last month. Barring, the demand for professionals in BPO sector which saw a 17% dip in hiring activity in Jul-11 as compared to Jul-10, all functional areas show positive movement in hiring activity when a year on year comparison is done.
City Wise Analysis:
Delhi, Mumbai and Kolkata maintained steady hiring levels in Jul-11 when compared to Jun-11. Bangalore, Chennai and Hyderabadwitnessed indices dip within the range of 9% and 19% in Jul-11 as compared to the previous month, due to the high IT serious focus in these markets.
On an overall level, the index seems to have stabilized at an elevated level as compared to last year, but some correction on a month to month basis.