Signs of weaknesses in global economy and slow recovery in industrial output in the Indian economy appear to be weighing on the minds of corporates in their hiring plans. As many as 23 of 32 sectors monitored by the ASSOCHAM Job Data Tracker (AJDT) posted decline in job postings. However, there were a few exceptions like automobiles that showed a healthy expansion of 37.7%.
The worst hits were media, insurance, pharma, retail, aviation and FMCG. For instance, the media saw a contraction of about 60 per cent in job postings while the troubled real estate industry reduced hiring by over 75 per cent.
About 4500 corporates across 32 sectors posted a total of 1.32 lakh jobs during the July to September 2014 period across India as against 1.65 lakh during April to June 2014.
The AJDT sourced information primarily from vacancies posted by about 4,500 companies on various job portals, along with advertisements offering employment opportunities published in national and regional newspapers across 56 prominent cities.
While the Information Technology (IT) remains the largest job creator posting 56,200 jobs during July-September, 2014 , the sector witnessed a drop of 13.2 per cent in vacancies over the previous three months of the year.
While the business sentiment seems to be picking up, the corporates are still not sure whether to go ahead with hiring plans ..The signals from the global market point towards a slowdown and this is surely affecting hiring in the IT which drives bulk of its revenues from exports, particularly to the US, Europe, Japan, ASSOCHAM Secretary General Mr D S Rawat commented.
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The IT industry has been amongst the largest creator of jobs in the globe and similarly in India. The analysis suggests that of late a decline in jobs generation has been seen in leading IT companies such as Nokia, Yahoo, IBM etc.. Moreover, bulk hiring seems to be on a downward spiral in the leading domestic IT firms as well.
Among the largest ten jobs generating sectors for the July to September period, only financial services and automobile sector, have recorded positive growth rate as against April to June 2014. Automobile sector has recorded 37.7 per cent growth in jobs generation and financial services has recorded 8.6 percent jobs generation growth during the same period.
The job generation growth dipped in academic & education sector (17.8 per cent) insurance sector (28.0 per cent), manufacturing sector (29.6 per cent), engineering (23.9 per cent), banking sector (3.9 per cent) and FMCG sector (23.2 per cent) during this period.
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