Hiring activities slowed down by 7% in May compared to the same month last year, mainly due to companies adopting a cautious approach to cutting expenses on the back of the economic slowdown, a report said on Thursday.
Foundit, formerly Monster APAC and ME, released foundit Insights Tracker (fIT), presenting the latest findings on monthly hiring trends.
The latest tracker indicates there has been a 7% slowdown in hiring compared to the same time last year. However, despite the general decline, positive trends were seen in tier II cities like Ahmedabad and Jaipur.
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The tracker indicated that hiring activity is declining across all industries, with a 4% month-over-month (MoM) decline.
The report noted that this decline can be attributed to several factors, like the economic slowdown, which has forced companies to cut expenses.
The significant skills gap in the country has also complicated employers' hiring processes by making it challenging to locate qualified candidates, it said.
Further, the report stated that the ongoing technological disruption is changing industries and leading to job changes, impacting hiring activity in general.
Commenting on job trends for May 2023, Sekhar Garisa, CEO of foundit, a Quess company, said, "The current hiring trend reflects the challenges faced by India's job market. However, amidst these challenges, there are pockets of growth that offer opportunities for job seekers."
Increased hiring in Tier II cities and specific industries like shipping and maritime, advertising, public relations, retail, and travel and tourism demonstrate resilience, he said.
"Although the hiring environment may remain challenging in the near future, as the economy strengthens, we anticipate a surge in hiring across industries. Also, it is crucial for job seekers to be adaptable to this shifting labour market. The skills in demand today may not remain relevant in the future, emphasising the importance of continuous learning and acquiring new skills," Garisa added.
foundit Insights Tracker is based on the monthly analysis of job posting activity online across recruitment platforms.
Among cities, Ahmedabad stood out, witnessing an 8 percent increase in hiring, while Jaipur also demonstrated a marginal YoY growth of 1%.
However, several major cities have experienced a decline in hiring, including IT hub Bangalore, which witnessed a 24% dip.
This fall may be attributed to multiple factors, including the rapid automation that is replacing jobs in various industries, like the IT sector.
Similarly, Delhi/NCR, Mumbai, Pune, and Hyderabad also saw significant YoY declines ranging from 9% to 16%, underscoring the difficulties faced in the job market in these areas, the report added.
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