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India – Recruitment turns sluggish amid uncertain economy

09 July 2013

Recruitment across India slumped in June as companies remained cautious amid uncertain economic conditions, according to the Naukri Job Speak report. The Naukri Job Speak index is currently at 1230, equating to a -7% drop in June 2013, compared with May’ 13; however the index shows an increase of +2% when compared with June 2012.

While hiring was low in June 2013 compared with May 2013; year-on-year positive trends have been identified in Delhi, Bangalore, Hyderabad and Kolkata. Delhi-National Capital Region has emerged as the major hiring hub with +21% rise in hiring in June 2013 when compared to June 2012. Mumbai has seen a decline in hiring by -8% during the same time period. For most of the sectors, the hiring figures have been slightly sluggish month-on-month. However year-on-year, the Information Technology-based Services (ITES) sector created the most jobs with a +47% increase in the index value in June 2013; followed by Healthcare, Banking and IT with +14%, +5% and +3% rise in values, respectively.

“The macroeconomic environment is still not very robust and the pattern of job creation in this quarter has been quite symbolic of caution and vigilance taking cues from the weakened global economic parameters. However across industries and functions, hiring should stay resilient over a longer term. Sustainable growth will take time to settle into place,” said Hitesh Oberoi, managing director and CEO of Info Edge (India) Ltd.

ITeS exhibit high growth with a +47% in hiring when compared to previous year; although month-on-month it dropped by -8% in June 2013 when compared with May 2013. Job demand in Banking & Financial Services and Software Services has shown a rise in index Value by +5% and +3% respectively, year-on-year basis in June 2013.

Oil & Gas and Insurance sectors have seen marginal growth with +2% in June 2013 when compared to May 2013. Sectors like Pharmaceuticals and Telecom after seeing consecutive growth in the first two months of the quarter are now showing a dip of -27% and -18% respectively, month-on-month. After a slight increase in May, the Auto sector has also shown a dip of -15% in hiring activity month on month.

Compared to same period last year ITeS has seen a +46% increase in the demand for professionals in June 2013. Although month-on-month the index is showing a dip of -10%. Recruitment in Software Services is stable and is still showing growth in hiring numbers when compared to last year. Banking & Insurance has witnessed the number of professionals being hired going up by +5% in June 2013, when compared to the previous month. Demand for professionals in HR, sales and accounts also showed a dip in hiring numbers in the ranging between -7% and -12% during June 2013, compared with last month.

All top cities have seen lower hiring numbers in June compared with May. Year-on-year, Delhi-NCR has seen a +21 % increase in hiring levels. Bangalore and Kolkata remained almost stable in job creation. Job demand in Hyderabad was up by +7% in June’13 compared to the same period last year. Both Chennai and Pune saw hiring going down by -5% in June 2013 compared with last year. Mumbai has seen a decline in hiring by -8% during the same time period.

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