The economic recovery continues to show promise, with hiring in key sectors trending upwards in May. Hiring activity jumped 40% year-on-year, according to a new survey, as India’s labor market shows promising signs after a few years of a Covid-19 slump.
The Naukri JobSpeak index for May stood at 2,863, indicating that the labor market was on the rise. The monthly index calculates hiring based on registrations on Naukri.com on a sequential and annual basis. With an index value of 1,000 as a base, the index calculates subsequent monthly increases from July 2008.
SUSTAINED GROWTH IN KEY SECTORS
The travel and hospitality sector saw strong hiring growth in May, with the summer holidays driving a surge in travel (See naukri.com chart). The industry rebounded from a Covid hit in May 2021, recording 352% year-on-year growth. The sector maintained its monthly pace, showing signs of stability.
Retail at 175%, real estate at 141% and insurance at 126% were among the top sectors seeing significant growth over the year. Over the month, the insurance sector grew by 25%. Other key sectors that saw growth in hiring trends over the year were Banking, Financial Services and Insurance (BFSI) at 104%, Education at 86%, Automotive at 69%, oil and gas at 69%, fast moving consumer goods FMCG at 51% and computer software/software services at 7%.
Compared to April, all key sectors showed stabilization.
DELHI LEADS KEY CITIES IN RECRUITMENT
Demand for talent in metro and non-metro cities remained flat, indicated by double-digit year-on-year growth (See naukri.com chart). Delhi recorded the highest annual growth at 63%, followed by Mumbai at 61% and Kolkata at 59%. Other metros weren’t far behind either with Chennai registering 35% growth, Pune 27% and Hyderabad 23%.
Tier II cities also saw upbeat hiring trends, with Jaipur topping the charts at 76%. Coimbatore at 64%, Vadodara at 49%, Cochin at 35%, Ahmedabad at 26% and Chandigarh at 25% are the other emerging cities that have seen double digit growth year on year.
EMPLOYERS DESIRED TO HIRE TRAINERS
Demand for entry-level talent (0-3 years old) posted the largest increase at 61% in May. Hiring intention was positive for experience brackets such as 4-7 years (37%), over 16 years (27%), 13-16 years (26%) and 8-12 years (22% ).
Naukri.com Chief Commercial Officer Pawan Goyal said of the findings, “The recruiting landscape continues to remain resilient and maintains the momentum that was ushered in 2022.”
The labor market showed stable sequential trends that are significantly above last year’s benchmarks. The secular nature of trends; crossing metros and non-metros, experienced professionals as well as newbies is again a good indicator of this strong sense of hiring.