India Inc to go on hiring spree

Mumbai to see the largest increase in hiring activity.

Corporate India expects substantial growth in net employment in the coming months.

The Team Lease-Gallup Employment Trend Index for November 2005 "" April 2006 shows a rise of 54 points over the previous wave, following a robust growth anticipated between April and November 2005.

In the survey, four out of five companies forecast an increase in hiring over the next six months.

The Employment Outlook Index, which is the difference in the proportion of respondents who report an increase in hiring needs and those who report a decline in hiring needs over the next six months, is at 76, reflecting 21 point growth over the previous wave conducted in the first half of the year.

Compared with the same period last year, the Employment Outlook Index has grown by close to 70 per cent, from 45 in the same period last year to 76 this year.

While the information technology (IT) and IT-enabled services show the highest index at 94, the trend is more modest in comparison to the previous waves. But the growth projected from financial services and other services sectors is very substantial.

The financial sector is expected to grow by 32 points, while other services will grow by 24 points. Growth projections for the manufacturing and IT/ITES sectors average around 20 points.

The Pune Index, which has remained more or less constant for the last year, shows a sharp rise from 44 points to 84 points.

Mumbai shows an increase of 36 points, from 46 points to 82 points. Given the large employment base in Mumbai, this suggests that the largest expected increase in hiring activity will occur in Mumbai over the next six months.

Growth in the two western cities reflects higher projections for the financial services and other services sector as well.

Delhi, which has had a relatively constant expectation over hiring for the last one-year period, indicates a rise in hiring activity over the next six months.

Kolkata, which has shown a steady growth in the employment index over the last two waves, shows continued growth with a projected index of 76. In contrast, the expected growth in net hiring in Bangalore is a modest 74.

Chennai is the only southern city that projects significant growth in net employment. While the last one-year has not seen any major growth in employment projections, the forecast for the next six months indicates a spurt in employment, with a rise in the index of 22 points.

Bangalore and Hyderabad are projecting a flat trend on the net hiring over the next 6 months. Infact, one out of five companies in Bangalore indicate a status quo in hiring over the next 6 months. Hyderbad expects a decline in the net employment over the previous wave this year.