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2013: It's Happy New Year for Indian job seekers, says Survey

Posted On: 15/12/2011      Updated On:
Despite Slowdown, Indian Employers Most Optimistic This will stand out as a bright spot in an otherwise sluggish economic environment. As we usher into the New Year, despite all the gloom surrounding the global and Indian economy, employers are holding onto the India story as they intend to increase hiring by 2% over the next three months compared to the last quarter .Backed by the buoyancy in the services space, and a possible resurgence in the financial sector (see chart) Indian employers have emerged as the most optimistic, as far as hiring goes, among 41 countries surveyed by a global staffing services firm. India, Brazil and Taiwan emerged as the top three countries with the most positive hiring sentiment for next year, said the report.

Hiring intentions for the first three months of the new year are strongest in India, Brazil, Taiwan, Panama and Turkey, and weakest in Greece, Hungary and Italy, where a greater percentage of employers in these three countries are planning to trim payrolls rather than hire staff added the report. “The hiring trend is being led by the IT, banking and manufacturing sectors, especially multinationals and large national corporations, which are planning to hire aggressively in the first quarter of 2012,” said Sanjay Pandit, MD of Manpower India. The services sector will lead the pack, followed by mining and construction as well as the education/public administration industry in creating jobs in an otherwise subdued job market over the last six months.

But some other recruitment firms, which have still to come out with their projections for next year said the macro-economic situation in India will have to improve for hiring to go on an upswing like it did in second half of 2010 and early 2011. “If the budget for next year, which is to be announced by the government in February, has a lot to offer to boost sentiments then an increase in hiring will be felt immediately. Otherwise we expect sentiments to remain the same, although, there is no indication of worsening of hiring intentions,” said E Balaji, MD & CEO, Ma Foi Randstad, a staffing firm. Compared to the post-Lehman days in 2008, recruitment firms said companies are better prepared this time around. “The Indian economy was on a major upswing and employees expected a 20% hike every year, the financial crisis came as rude shock and companies did not know how to react back then,” Balaji added. Industry watchers said salary hikes are likely to range between 10-12%, to protect employees against inflation, with the better performers being given even a 15-20% raise. The situation may improve from first quarter of 2012 although, the picture till end of next year is not very great. But post that, there will be lot of movements and global layoffs can create opportunities for India in back-end operations, captive units and for third party service providers,” said Sunil Goel, director of recruitment agency GlobalHunt.
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