July 2024 sees drop in white collar job vacancies, back to 2023 figures

India’s white-collar job market in July saw a shift back to late 2023 levels, deviating from the growth trend observed in the first quarter of 2024, reported The Economic Times, citing data compiled by staffing firm Xpheno. 

The report stated that there were 260,000 active job vacancies across various sectors based on leading job boards and professional networking sites.

The job market had peaked in March 2024, reaching a two-year high with 340,000 open positions, according to data aggregated from sources like LinkedIn, Naukri.com, Indeed, and Shine.com, the business daily said.

In comparison, the number of active job openings in July reflected a 4 per cent decline from July 2023 and a 10 per cent drop from July 2021, particularly in roles requiring one or more years of experience.

Executives from major corporations attributed the decrease in vacancies to a typical slowdown during election periods and ongoing challenges in the IT services sector, which is a significant contributor to white-collar employment.

Analysts expect rebound in job market

Industry analysts anticipate a rebound in job demand in the latter half of the year, spurred by Budget initiatives aimed at boosting employment and anticipated increases in consumer demand, driven by the upcoming festive season, normal monsoon rains, and a pickup in rural economic activity.

The tech sector has seen a 24 per cent growth in demand since December 2023, though this is still 32 per cent lower than the peak demand observed in March 2024. Meanwhile, demand in the non-tech sector has slowed, showing a 16 per cent decline since December 2023.

Demand in Tier-1 locations has rebounded by 54 per cent since December, although it remains 25 per cent below the peak levels of March 2024.

Decline in white-collar hiring in June

Earlier last month, a report highlighted a 7.62 per cent decline in white-collar hiring activity in June, with 2,582 job postings compared to 2,795 in the same month the previous year, according to the Naukri JobSpeak Index.

Sectors like telecom (12 per cent), BPO/ ITES (9 per cent), education and teaching (9 per cent), and Global Capability Centres (7 per cent) experienced a decrease in hiring compared to June of the previous year. However, sectors such as insurance (28 per cent), FMCG and food industry (12 per cent), and pharmaceuticals (6 per cent) saw an increase in hiring.

Cities in Rajasthan and Gujarat showed resilience, with Jodhpur (36 per cent), Kota (21 per cent), Udaipur (13 per cent), Rajkot (35 per cent), Surat (13 per cent), and Jamnagar (13 per cent) leading in job creation. On the other hand, larger cities like Bengaluru (9 per cent) and Mumbai (6 per cent) experienced a decline in hiring activities.