Tourism, Telecom/ISP, and BFSI sectors witness growth, budget allocations to further increase talent demand
Mumbai, February 06, 2024 – foundit (formerly Monster APAC & ME), India’s leading talent platform, published the foundit Insights Tracker (fit), presenting the latest findings on hiring trends for January 2024.
According to the latest tracker, the hiring activity across sectors has gradually increased, showcasing a 3% month-on-month growth in hiring. Although, on a year-on-year (YoY) scale, the overall index reflected a 5% decline, the hiring trend in the past months has been positive. The index progressed from 255 in December 2023 to 262 in January 2024. With the announcement of the Interim Budget 2024, the employment outlook for the Indian job market remains optimistic, with huge potential for growth and economic progress in the months to come. Across diverse sectors including Travel & Tourism, Telecom/ISP, BFSI, and Logistics, Courier/Freight/Transport, there has been consistent and positive momentum in hiring activities. This collective effort from various industries has resulted in a noteworthy 5% overall growth in job posting activity observed over the past three months, indicating a robust recovery in employment opportunities.
Offering a hiring overview for January 2024, Sekhar Garisa, CEO, foundit (previously Monster APAC & ME), a Quess company, said, “The Interim Budget 2024 has identified the acceleration of growth and job creation as key priorities for economic development, while undoubtedly reiterating the need for Indian youth to be skilled and employable. Through our tracker, we could trace the steady growth of the tourism industry, which aligns with global trends and the government’s interests. The budget’s focus on developing iconic tourist destinations and promoting spiritual tourism aligns with the increasing demand for unique and immersive travel experiences. This forward-thinking approach aligns perfectly with the evolving trends we observed at foundit, where the travel and tourism sector has seen an impressive 21% year-on-year hiring growth. We also feel that upskilling initiatives should be encouraged as it will not only empower the workforce but also align the recruitment industry with the evolving demands of the digital era. Overall, we anticipate more stability and growth in the coming months, creating new job prospects in the market.”
Broadband penetration and GDP growth drive job spikes in Telecom/ISP and BFSI sector
On a month-on-month basis, the Telecom/ISP, BFSI, and Logistics, Courier/Freight/Transport sectors showed a 5% increase in job postings. The steady growth trajectory showcased by these sectors speaks volumes about the untapped potential of these industries to act as a key driver for employment generation, economic growth, and infrastructural development. With policies around the wider adoption of broadband, the introduction of 5G services, and the relaxation in GST, the Telecom/ISP sector will further boost in the coming months. The banking, financial services, and insurance (BFSI) sector has always been fundamental to economic development, serving as a key player in capital allocation, risk management, and the promotion of financial inclusivity. With the country’s GDP poised for growth, the BFSI sector is a key facilitator, positioned to thrive alongside the overall economic expansion. Additionally, the advancement and integration of technology into various sectors have only fostered sustainable growth across the country.
The year started positively, with many previously lagging sectors having recovered and showcased an optimistic outlook for the future. The travel & tourism sector’s post-pandemic rebound was remarkable and has strongly contributed to the Indian economy. On a MoM basis, the sector (6%) showed the maximum increase in job postings. Considering the recent budget allocations given to the tourism sector and with the support from Government initiatives such as ‘Swadesh Darshan’ and ‘Dekho Apna Desh’, India is looking ahead to create a more balanced and accessible tourism ecosystem. The country’s scenic landscapes, diverse cultures, and historical wonders lay the platter for the sector to perform well.
Southern cities, Chennai and Hyderabad lead in hiring; northern cities report third
Chennai stands out with a remarkable 9% MoM increase in hiring, potentially attributed to the setting up of numerous manufacturing units in the state and business expansion plans implemented by corporations who wish to expand to southern states. Chennai is also an important centre for international shipping routes, enhancing its accessibility and connectivity.
Apart from Chennai, Hyderabad and Bengaluru, known as the IT hubs, experienced a 5% and 3% month-on-month rise in hiring activity, respectively. Tech talent recruitment has been largely dominated by Bengaluru, followed by Hyderabad. It was also noted that even the non-tech industries have started adopting technology for efficiency. Following suit, Baroda showcased a 5% increase in job opportunities, and the cities Jaipur, Ahmedabad, Pune, and Mumbai maintained a relatively stable hiring environment with a 2% increase in hiring in each city.
Meanwhile, cities, including Kolkata, Kochi, and Chandigarh, faced declining hiring percentages, dropping by (-1%), (-2%), and (0%) respectively. However, the subtle decline in other cities only signifies a muted growth in the job market.
Legal, Marketing & Communications Job Roles Drive 7% Growth in Hiring
Job roles in legal, marketing, and communications topped the list of job functions with a 7% increase in online hiring activity. Despite the global headwinds and geopolitical tensions over the past year, the Indian economy has remained resilient with the continued adoption of new-age technologies. This rise underscores the industry’s increasing reliance on experts who can navigate the complex landscape of digital marketing and communication tactics. Considering the global banking crisis and the unprecedented wave of employee layoffs, most firms are still in a wait-and-watch mode. However, hiring for GCCs and Indian enterprises, especially for job roles including Sales & Business Development (2%), HR and Admin (2%), and Finance & Accounts (1%), have been positive. Professionals with a blend of financial expertise and technological acumen are always particularly sought after.
There was a downward trend in hiring for Purchase/Logistics/Supply chain (-3%) job roles, followed by Engineering/Production (-2%), Customer Service (-2%), and Senior Management positions (-2%). This month, the demand for Hospitality & Travel jobs, Software, Hardware, Telecom, and Healthcare job roles were moderate.
Senior and mid-senior level professionals see a downturn in hiring
In the current job market, characterised by a global economic slowdown, senior and mid-senior level professionals with 7+ years of experience witnessed a downturn trend in hiring. However, freshers with 0 to 3 years of experience and younger professionals with 4-6 years of experience have showcased subdued growth.
Hybrid work model trend continues to prevail
The year 2023 introduced the concept of hybrid flexibility for front-line workers, especially in Healthcare. Organisations encouraged Pre-emptive relaxation, aimed at sustaining emotional resilience and performance amongst employees. While many organisations witnessed their employees ‘quiet quitting,’ many corporates also flipped the script by adopting ‘quiet hiring strategies, a method to acquire fresh skills and capabilities without the need for expanding their full-time employee base.
The data suggests an almost similar trend in 2024 when compared to 2023, the hybrid work model is still prevalent. Although we are in the midst of an employer-centric market due to the global economic slowdown, the employees still choose flexibility and better work-life balance. According to the current figures, 21% of jobs account for hybrid work and a mere 9% for WFH while the job seekers seeking hybrid and remote job opportunities are still 44% and 17% respectively.
The IT sector, which holds the highest share of remote jobs on foundit continues to lead, contributing 44% of both permanent and temporary remote job postings online. The breakdown comprises 31% for hybrid roles and 13% for fully remote positions, experiencing a notable 14% decline on a year-over-year basis. As organizations navigate the evolving work landscape, the growing emphasis on workplace flexibility has sparked discussions around the adoption of a four-day work week as well, indicating a broader shift towards innovative approaches to work-life balance.