India’s largest composite staffing firm, TeamLease Services today launched their biannual ‘Employment Outlook Report’ for the April-September, 2019-20 HY.
The report forecasts a 3% rise in the net employment outlook and a net addition of 11.5 lakh jobs over the April – September, 2019-20 Half Year. According to the report, about 57% of the industries are projected to witness an increase in their net employment outlook.
‘Net New Job Creation’, is also a pivotal parameter in the TeamLease ‘Employment Outlook Report’. Findings of the report have indicated an overall creation of 11,44, 286 jobs. Majority of these roles will be across Mumbai[1,67,585], Delhi[1,59, 051] and Bangalore[1,50,120], with sectors like Retail[1,66,000], Logistics [1,49,000] and Educational Services [1,17,000] creating maximum opportunities. 17% of these new jobs created will be focused towards hiring fresh graduates.
Travel & Hospitality and BPO/ITeS with a 4% rise are the leading industries that will lead the optimism. The positive outlook in the job market is attributed to the increase in investments, the revised FDI regulations and the new governance policies across sectors.
According to the report, eleven out of the nineteen sectors surveyed project an increase in net employment outlook, while 8 sectors anticipate a decrease in outlook. Similarly, from a geography point of view also the net employment outlook stands positive.
– Positive: Travel & Hospitality [+4%], BPO / ITeS [+4%], Power & Energy [+3%], Logistics [+3%], Retail [+2%], Financial Services [+2%], Educational Services [+2%], Consulting [+2%], Manufacturing, Engineering & Infrastructure [+2%], Construction & Real Estate [+2%] and FMCG/D [+1%].
-Negative: Marketing & Advertising [-1%], Agriculture & Agrochemicals [-2%] , Telecommunications [-2%], KPO [-3%], Healthcare & Pharmaceuticals [-3%], IT [-4%], Media & Entertainment [-4%] and Ecommerce & Tech Start-ups [-5%].
A key contributor to the positive employment outlook has been the Tier-2 geographies which apprehend a monumental 5% increase in hiring sentiment, followed by Tier-3 towns and rural area where hiring in projected to increase by 2% each. The positivity is not restricted to sector and geographies, it is promising across hierarchies as well, except for senior-levels.
The outlook for mid-levels is set to grow by 4% and the outlook for entry and junior levels by 3% each. Analyzing hiring sentiment across business sizes, the report estimates a 5% jump in hiring across medium sized businesses. Large and small enterprises are also expected to report a growth of 2% and 1% respectively.
However, from a city drill down, the net employment outlook is a mixed bag with 7 out of the fourteen cities covered in the audit indicating negative sentiments. While Pune (5%), Coimbatore (4%) and Indore (4%) are on the upward trajectory, Kochi (-4%), Gurgaon (-4%) and Hyderabad are pulling the growth momentum downward.
Commenting on the report, Rituparna Chakraborty, Co-Founder & Executive Vice President TeamLease Services, said, “The positive business outlook created by the stock market rally and increased investments seems to be having a corresponding impact on the employment outlook. It has revived the net employment outlook which had witnessed a drop of 2% in the last half year to a 3% rise in the current half year.
The buoyancy witnessed is also expected to translate positively on the job creation front as well. In fact, around 11.5 lakh new jobs will be created in the formal sector. Retail, Logistic, Educational Services and Fast Moving Consumer Goods and Durables alone will add around 1.66 lakh, 1.49 lakh, 1.17 lakh and 1.10 lakh respectively. While talent from across all levels stands to gain from this optimism, the biggest gainer will be freshers. 17% of all net new jobs estimated to be created during the April-September, 2019-20 HY are likely to be Fresher hiring indicating an augmentation of volume hiring. We are hopeful that the election and formation of the new government will make the sentiment more affirmative and conducive.”
The report also analyses attrition trends and according to the report findings, out of the nineteen sectors surveyed, attrition has significantly dropped in five sectors (Construction & Real Estate, IT, KPO, Telecommunication and Travel & Hospitality) in April- September 2018-19 as compared to October-March, 2018-19.
Attrition in some sectors remained stagnant but increased in five sectors (Agriculture and Agrochemicals, Educational Services, FMCG& D, Financial Services, and Retail). Attrition in BPO/ITeS was at a 19.12% and Ecommerce & Tech Start-ups at 16.17%.
In correlation to the last six half years, attrition rates have risen above historical trends for Educational Services, Financial Services and Retail, while attrition has fallen for sectors such as Construction & Real Estate, IT and Travel & Hospitality.