Hiring gathers pace in July; recruiters see more gains

Friday, August 11th, 2017

NEW DELHI: Activity in the job market is probably picking up, with big recruitment firms witnessing more than 10% increase in July hiring compared with a year earlier. They predict the growth to gain pace going ahead, helped in part by the positive impact of GST on the economy.

Sectors that are driving hiring include banking and financial services, ecommerce, consumer goods and telecom.

Manufacturing, IT and industrial services, which were subdued on the jobs front, are also likely to look up in the next few months, according to executives from recruitment firms such as ABC Consultants, Monster, TeamLease, Quess and Randstad India.

The new indirect tax system that India rolled out on July 1 didn't result in any uncertainty in the jobs market, as demonetisation had immediately after the note-ban announced late last year. In fact, several executives that ET spoke to expect GST to have a positive impact.

“Job market reacted negatively to demonetisation, but this is not so in the case of GST. On the contrary , industry leaders are bullish of a post-GST world, and are expecting business to look up in the months to come,“ said Shiv Agrawal, managing director, ABC Consultants.

The Monster Employment Index for July 2017 charted 13% year-on-year growth in hiring.“This is the highest recorded growth this year,“ said Sanjay Modi, Monster's MD for Asia-pacific APAC and the Middle East.

Sectors like BFSI, telecom, home appliances and FMCG are driving the expansion. BFSI seems to be leading this growth with a 43% increase in hiring in July , according to Monster. “This could be attributed to the increased emphasis on digitisation that altered the dynamics of the sector in India,“ said Modi.

"Nearly a lakh new jobs would be created in the next month or so and about 3 lakh professionals associated with GST-related activities will be in demand over the next nine months," said Lohit Bhatia, the staffing solutions business head at IKYA Human Capital Solutions, a division of Quess. Employment demand in the second quarter ending September is expected to be 15% over the previous three-month period. According to Bhatia, some industries may even see growth as high as 20-25%, like agriculture-allied services, retail, ecommerce and BFSI.

According to the latest TeamLease report on the impact of GST on jobs, an 11% expansion is expected between July and the year-end across sectors. "Automobiles, logistics, home decor, ecommerce, media and entertainment, and cement sectors are projected to create 11-18% additional jobs annually after implementation of GST," said Rituparna Chakraborty , co-founder of TeamLease. According to her, the buzz in ecommerce hiring has been back since July . 

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