The pre-Covid-19 level of hiring by companies is likely to return in the next two quarters indicating a gradual recovery in the economy.
According to a survey of 1,518 employers in India during the month of October across the country conducted by ManpowerGroup, around 65% of employers are looking to hire in the next six months, while 23% of them are hiring in the next three months.
Another 18% employers are hopeful of recruiting new employees after June and before September next year, while 10% of them are unsure of new hiring, the survey revealed.
The Employment Outlook Survey, conducted by the Manpower Group for Q1 of 2021, shows that large-sized businesses, with a workforce count of more than 250 employees are also anticipating quick hiring within the next year. Medium-sized companies, with a workforce count of up to 250 people, are highly anxious to start hiring again. About 22% of the companies interviewed said that they wanted to resume normal level hiring by the end of December 2020.
Small businesses, which employ up to 50 people, are anxious to get their business flowing. About 37% of them wanted to resume normal hiring within the next 4-9 months, between December 2020 and June 2021.
Among the sectors that will lead the job market are: Finance, Insurance, Real Estate and Manufacturing sectors. The strongest hiring pace is recorded in the small-sized organisations followed by the large and medium-sized organisations. From a region perspective, East indicates a more positive outlook followed by West.
"Corporate India is showing healthy signs of recovery and overall positive sentiment is gripping the market. Many of the deep-rooted structural factors that have sustained Indian economy over the years like geopolitical stability, diversified economy, and demography among others are likely to play a pivotal role in the new normal," Sandeep Gulati, Group Managing Director, ManpowerGroup India said.
The recent Labour reform bills passed in the Lok Sabha will also benefit the labour force and employers, alike, he said.
According to the survey, the construction industry is the only industry surveyed where all employers stated that they wanted to return to pre-Covid-19 level hiring within the next year. The other industries surveyed floated between 80-90%. Public admin and Education had the lowest intent to hire within the next year comparatively with only 58% responding positively.
About 47% of the organisations in the finance, insurance, and real estate sector intend to return to pre-Covid-19 hiring within the next 4-9 months, between December 2020 and June 2021, the ManpowerGroup survey revealed.