Online recruitment in India reported an 8% drop in September 2023 compared to September 2022, according to the latest foundit Insights Tracker.

The hiring index dropped from 277 in September 2022 to 255 in September 2023, showing a stagnation in hiring.

Over the month, e-recruitment saw a 2% month-over-month decline.

"India is experiencing a temporary hiatus in hiring as companies focus on upskilling their current employees to the changing landscape before hiring new talent. However, our economic prospects are bright and resilient against global headwinds," Sekhar Garisa CEO of Foundit, a Quess company, said. "The rise in real wages and disposable incomes is boosting demand, particularly in private health insurance, retail, and consumer durables.”

Several sectors reported year-on-year online hiring growth including shipping (32%), retail (30%), office equipment (24%), travel and tourism (18%), advertising (13%), social service and NGO (non-governmental organisation) (8%) and automotive (5%).

However, hiring activities in sectors like home appliances (-16%), BPO/ ITES (3%), banking financial services and insurance (18%) and IT - hardware, software (14%) witnessed a declining trend, the report added.

According to the report, while hiring has stagnated, India's economic prospects appear promising due to its expanding online consumer market, continued digitisation and innovation, green transition initiatives, infrastructure investments and policy reforms.

Garisa said improved access to finance, infrastructure upgrades, green initiatives, and policy reforms further contribute to a favourable business environment that fosters job creation.

"However, addressing the need for upskilling is crucial for realising this potential as the rise and percolation of Artificial Intelligence in every sector is inevitable," he added.