Nearly 80 per cent of employers intend to maintain or increase their workforce in the second half of FY24, according to a report by TeamLease.
The surge in workforce expansion can be attributed to government policies and initiatives aimed at fortifying employment opportunities and cultivating a business-friendly environment.
With data from 1,820 companies across 14 cities, the report provides an analysis of anticipated employment trends across 22 industries.
Nearly 84 per cent of the employers surveyed expect an increase in workforce in their respective industries over the next six months. Both new hires, at 79 per cent, and replacement hires, at 74 per cent, are occurring rapidly, indicating a flourishing labour market in the country.
Across various industries, no industry was below 65 per cent in incremental new hiring, indicating that new hires largely drove workforce expansion. Manufacturing, engineering and infrastructure, and construction and real estate showed promising hiring trends.
With respect to industry trends, healthcare and pharmaceuticals stand out with 86 per cent workforce expansion. Electric vehicles (EVs) and infrastructure follow closely behind at 85 per cent. Moreover, the top industries for new hiring include the EV and infrastructure sector at 88 per cent, and healthcare and pharmaceuticals at 87 per cent.
For replacement hiring, power and energy lead the way at 88 per cent, followed by FMCD at 85 per cent, and healthcare and pharmaceuticals at 84 per cent.
According to the report, economic conditions significantly impact the employment environment, as cited by 69 per cent of respondents. Furthermore, business growth or expansion is a significant factor, as mentioned by 53 per cent of respondents.
However, 31 per cent of the respondents said skill shortages and mismatches between available skilled personnel and job requirements can have a significant impact on hiring. Additionally, 19 per cent of respondents concur that technological advancements are a key factor in determining employment opportunities in India.
For new hires, Bengaluru maintains its prominence at 87 per cent, with Mumbai at 86 per cent and Chennai at 83 per cent. In the category of replacement hiring, Mumbai leads with 82 per cent, followed by Bengaluru at 78 per cent and Chennai at 76 per cent. Tier 2 cities are not far behind as they are gaining business prominence and show high incremental workforce expansion in cities like Coimbatore, Gurugram, Kochi, Nagpur, Chandigarh and Indore.
In workforce expansion, Human Resources, Marketing, and Information Technology emerge as the top functions with 71 per cent, 70 per cent, and 70 per cent, respectively.
“Observing the dynamic evolution of India’s economy, there’s a distinctly optimistic tone among employers. An impressive 79 per cent of them are planning to increase their workforce, indicating a robust financial foundation supporting this optimism, particularly for Q4. Despite a slower pace in Q3, this upward trend in employment isn’t merely about increasing headcounts; it’s a strategic move to leverage economic growth and take advantage of conducive policies, contributing significantly to the country’s economic resurgence,” said Kartik Narayan, CEO – Staffing, TeamLease Services.
“As we navigate the evolving landscape, we have an opportunity to shape a brighter future for the workforce. We must continue to adapt, innovate, and invest in the skills and focus on diversity and inclusivity that will drive India’s growth in the coming months,” he added.