‘Robust GDP growth to boost hiring in second half of FY-24’

New Delhi: Hiring activities in India set to get a boost in the second half of the current financial year as majority of the companies either plan to maintain or increase their workforce buoyed by robust economic expansion recorded in April-September period, staffing firm TeamLease said in a report on Tuesday.

Consumer and retail companies are likely to witness a resurgence in the fourth quarter of the current financial year after witnessing muted demand in semi-urban and rural areas in the festive season in October-December period.

The survey report indicates a remarkable trend in incremental workforce expansion, with 79 per cent of employers intending to maintain or increase their workforce in the second half of 2023-24.

“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,” said Kartik Narayan, CEO – Staffing, TeamLease Services.

The sharpest increase in incremental hiring is expected in healthcare, pharmaceuticals, electric vehicles and infrastructure sectors.

Bengaluru, Chennai and Mumbai are the top cities for incremental workforce expansion as well as for replacement hiring and new hiring. The survey report is based on data from 1820 companies across 14 cities.   Bengaluru has the highest rate of incremental workforce expansion at 89 per cent, followed by Chennai at 83 per cent and Mumbai at 82 per cent.

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 these cities are gaining business prominence and show high incremental workforce expansion in cities like Coimbatore, Gurgaon, Kochi, Nagpur, Chandigarh and Indore.

While the report carries positive sentiment for the financial services sector, we would observe cautious moves from banks, NBFCs and Fintechs with increased regulatory pressure from the RBI on lending norms for riskier credits, TeamLease noted in the report.

Job role wise, the human resources, marketing and information technology are set to be the best sectors for new hiring. For new hires, human resources function takes the lead with an impressive 92 per cent, while marketing follows closely at 87 per cent. For replacement hiring, information technology function leads the way with 94 per cent, with human resources close behind at 89 per cent.

“Employment landscape is optimistic, with none falling below 65% in incremental new hiring across industries. Additionally, a substantial 85% incremental new hiring in blue-collar roles showcases the enduring value of hands-on operational roles,” said Krishnendu Chatterjee, VP and Business Head, TeamLease Services.