Tier-II cities to be among the largest contributors in employment creation in 2016 owing to initiatives like Make in India & Smart Cities
The Indian job market is on a revival mode as per Monster India's recently released whitepaper that has analysed online hiring activity data of 5 years. This is first of a kind consolidated 'Monster Employment Index' analysing the online hiring activity in India in the past 5 years. Through this whitepaper, online hiring trends across key sectors such as Information Technology, BFSI and Production & Manufacturing have been analysed.The Indian economy is on a gradual upswing since the time the new government came into power. The job market opened up in 2014 with an average 17% rise in demand. The report highlights that BFSI led the online hiring activity followed by IT and Production & Manufacturing. After a consistent dip from 2010, there was a positive upturn in the BFSI sector with a 16% growth in 2014. With the infusion of capital following the approval in FDI, the BFSI sector has opened up generating more opportunities. The improved job market is fuelling renewed optimism in the banking, financial services and insurance (BFSI) sector. In September 2015, online recruitment in the sector was 85% higher than the year-ago and the pace of growth YoY has been improving consistently.
Production and Manufacturing is gaining momentum. The sector saw negative growth every year, for all three years prior to 2014. The sector stabilized by the end of 2014 with an 18% growth. IT sector has been one of the most stable employment generating sectors, where in 2014 there was a 32% increase in hiring in the sector.
While 2015 has been high on hiring vis-vis the past years, 2016 is anticipated to deliver the returns of the various reforms proposed by the government. The push on 'Make in India' and the plan to create 100 smart cities is expected to increase hiring in manufacturing and commerce as well as in the infrastructure sector. As a result of which, tier-II cities are expected to be among the largest contributors as far as employment creation is concerned. The key sectors- IT, Health Care and BFSI continue to look bullish for the coming year. Emerging sectors such as e-commerce and internet-related are expected to create the most number of employment opportunities.
Sharing his views, Sanjay Modi, Managing Director (India/Middle East/Southeast Asia/Hong Kong) said, "The year 2015 started on a promising note where we have witnessed economic growth as a result of much needed political stability, though the currency continues to fluctuate. What's however heartening to see is the robust growth of the start-up ecosystem that's urging individuals to explore new business avenues. Therefore one anticipates greater demand for experienced professionals, especially from mid to senior management"
Talking about the current scenario, Sanjay Modi said, "We can see some positive movement by government to make people more employable. The land acquisition bill for instance, states that about 30 crore landless people will get employment in the industrial corridors. Similarly, the railway reforms will offer a level playing field for private players investing in the sector, which is the second largest employer in the country after the Indian Army. Additionally, the Defence Procurement Procedure (DPP) 2016, would further boost the Make in India initiative with a greater role for the private sector and a big push to the medium and small scale sector. Interestingly, the buzz around clean air has increased manifold Therefore one anticipates employment opportunities for individuals with specialized skills in the clean energy space. The impetus on reforms such as Digital India and Smart Cities will provide employment opportunities in the tier II cities.
All these are steps to create an environment conducive for job creation. This sounds exciting and brings in the much needed cheer. However, what's equally important is to act swiftly towards implementing the reforms that undoubtedly can prove to be game changers for the growth of India & its people."
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