Hiring in the country witnessed a year-on-year growth of 12 per cent in January to May 2023 compared to the corresponding period of the previous year. The increase was driven by professional services, manufacturing, banking and financial services (BFSI), e-commerce, and IT/ITES sectors, according to Quess Corp data.
Compared to last year, the professional services industry doubled its headcount, registering the highest growth, mainly due to companies increasingly seeking external expertise to expedite business operations while looking to tide over global turbulence. Roles across areas such as taxation, business consulting, risk advisory, deal advisory, technology services and ESG services saw good growth.
The manufacturing sector exhibited a 50 per cent increase in headcount, with companies experiencing a strong uptick in sales for Indian products, both locally and internationally.
The BFSI and e-commerce sectors witnessed robust growth too, at 16 per cent each. The BFSI sector has remained steady due to banks holding their ground amidst challenges worldwide. This can be attributed to factors such as strong domestic demand, enhanced credit conditions for borrowers, and strengthened solvency and funding. The e-commerce sector is also doing well following adoption of smartphones, increasing internet penetration, growing access to digital payment systems, and the government’s push towards digital transactions and more.
Government’s efforts to create a more business-friendly environment and promote foreign investment in the country have also contributed to the sector’s growth, the company added.
The IT/ITes sector’s hiring stood at 9 per cent. Although the growth was muted compared to the previous year, it reflects the industry’s sentiment of treading carefully amidst an uncertain economic scenario and global challenges such as inflation, recessionary concerns, and geopolitical events impacting global markets.
“Over the past few months, we have seen companies tightening their belts, but India’s hiring prospects have improved over the past year. Moreover, several global bodies have affirmed that India will maintain its position as the fastest-growing economy in the world. We anticipate that India’s continued investment in crucial sectors like energy and infrastructure will catalyse employment growth in the years ahead,” said Naozer Dalal, CEO, Allsec Technologies (a Quess Company).
The above trends are determined based on payroll distribution data collated by Allsec Technologies over time.