- Hiring activity in the IT- Software sector dipped by 13% when compared to the previous month
- Hiring activity in the all the top cities of the country saw negative movement when compared to the previous month
- On a monthly level, hiring activity for the Auto and Banking sectors dipped by 26% and 16% respectively in Oct-11 over Sep-11
India Inc witnessed a 16% decline in recruitment in Oct-11 when compared to Sep-11, as all key industry sectors and functional areas have witnessed dips in their hiring activity when compared to the previous month. The double digit percentage dip in hiring can be attributed to the festive season spanning across October as well as the uncertainty in the global economic outlook. However, the three month moving average index indicates stability in hiring activity.
Hitesh Oberoi, CEO and MD, Info Edge said “A look at the index for the past two years shows that there is usually a seasonal dip in hiring during the festive season. However, this year hiring activity has been exceptionally low in Oct as most employers seem to be adopting a more cautious approach towards hiring”.
Industry Sector Analysis:
A detailed analysis of hiring activity shows that almost all key industry sectors have seen dipping indices in Oct-11 when compared to the previous month. Barring Telecom sector where hiring picked up by 19% in Oct-11 over Sep-11 and ITES sector which saw a marginal 3% dip in the index, all other sectors saw double digit percentage dips in hiring activity. The index for Auto sector witnessed a 26% dip in Oct-11 when compared to Sep-11, while IT- Software, Pharma, Oil & Gas and Banking saw their hiring activity dip within the range of 13% and 19% respectively during the same time period. When we compare the indices on a year on year basis then ITES, Construction and Oil and Gas sectors saw a negative movement.
Functional Area Analysis:
Mirroring hiring trends of top industry sectors, the demand for professionals across key functional areas have dipped in Oct-11 when compared to Sep-11. Professionals in Production and Sales saw hiring activity dip by 23% and 21% respectively on a monthly basis. The demand for HR, Marketing and Software services professionals also registered negative growth figures by 18%, 16% and 13% respectively during the same time period.
City Wise Analysis:
On a monthly basis, Mumbai Delhi and Bengaluru saw indices dip by 21%,19% and 10% respectively in Oct-11 over Sep-11. Hiring activity in Chennai, Pune and Hyderabad dipped within the range of 15% and 18% during the same time period.
Barring Bengaluru and Kolkata which witnessed year on year positive growth figures, hiring activity dipped for all cities in Oct-11 when compared to Oct-10.