The survey was conducted among 1,000 companies across 11 industry segments in India to assess their hiring intentions over the next 3 months and next year. Key findings include that while HR managers are uncertain about hiring in the short term due to recent economic experiences and policy uncertainty, most expect to significantly ramp up fresh hiring during 2010. Specific industries like IT and trade still face constraints impacting hiring but this is not expected to last long. Most companies anticipate sustained growth and an increasing need for new hires, though cost control will remain a major concern.
Ma Foi Employment Trends Survey March 2010 industry hiring outlook
1. Ma Foi Employment Trends Survey(March 9, 2010) The survey was conducted among 1,000 companies across 11 industry segments in India – Banking and Financial Services (BFSI), Education, Energy, Health, Hospitality & Travel, IT, ITES, Real Estate & Construction, Trade, Transport and Manufacturing. These companies were queried about their hiring intentions in over the next 3 months over the next year
2. Industry wise trends BFSI: Total Employee Base: 8,52,000 New Jobs: 46,000 Education, Training and Consultancy: Total Employee Base: 97,15,000 New Jobs: 83,000 Energy generation & supply: Total Employee Base: 8,74,000 New Jobs: 15,000 Healthcare Total Employee Base: 33,66,000 New Jobs: 2,95,000 Hospitality & Travel: Total Employee Base: 59,51,000 New Jobs: 1,37,000 IT & ITES Total Employee Base: 17,93,000 New Jobs: 97,000
3. Contd… Real Estate & Construction Total Employee Base: 7,30,000 New Jobs: 1,36,000 Trade (Retail) Total Employee Base: 611,000 New Jobs: 13,000 Transport, Storage & Communication Total Employee Base: 26,38,000 New Jobs: 27,000 Manufacturing Total Employee Base: 55,30,000 New Jobs: 68,000
4. City-wise trends Mumbai – Moderately down Entertainment up, media remains affected, financial services yet to pick up significantly, construction sector has bottomed out. Delhi – Significantly down Media and business services have taken a big hit. Retail has not recovered yet; financial services and construction sector see slow upturn. Bangalore – Moderately up Employment in IT is picking up again; retail sector remains adversely affected as players don’t add new stores. Business services continue to do well.
5. Contd… Kolkata – Moderately up Signs of revival in the manufacturing and IT. However, business services remain down and media continues to remain adversely affected due to the slowdown. Chennai – Significantly up Manufacturing and IT are both up significantly, slight improvement in retail and financial services. Situation may improve in the next couple of quarters. Pune – Strongly up Movement from Mumbai to Pune has strengthened due to better infrastructure. IT and manufacturing are strongly up as economy looks up. Construction is hiring again.
6. Contd… Hyderabad – Strongly down Political uncertainty has forced some companies to put plans on hold. IT, manufacturing, infrastructure and construction are all down. Ahmedabad – Strongly up Manufacturing sector, business services, media and transport sector all see a strong uptrend as new investments continue to flow into Gujarat.
7. Key Findings HR managers quite uncertain on hiring in the short term, but see the need for significant fresh hiring sometime during the calendar year 2010. Policy uncertainty as well as recent experiences are supporting this uncertainty in hiring. Overall therefore, most see very little hiring this quarter, but expect to ramp up in FY 2010-11. Industry specific constraints are still impacting hiring in sectors such as IT and trade, though this is not expected to remain for long.
8. Contd… Most see the current growth levels as sustained and on an accelerating trend and expect necessity for fresh hiring. Consensus among managers that despite rising inflation, new hiring will not be at significantly higher remuneration levels than observed currently. Cost control seen as a constant concern across all sectors