India Stands Sixth In Employment Outlook Globally, However, Employers Remain Cautious: Survey

The ManpowerGroup Employment Outlook Survey Q3, 2024 found that the India's NEO reflected that 30 per cent businesses planned to hire more employees in the third quarter of 2024

Employment outlook in India is projected to be strong during June to September 2024 period with a Net Employment Outlook (NEO) of 30 per cent points, a recent employment survey revealed. The survey stated that India ranked sixth in employment outlook, above the global average by eight points. 

The ManpowerGroup Employment Outlook Survey Q3, 2024 found that the India's NEO reflected that 30 per cent businesses planned to hire more employees in the third quarter of 2024, however, the outlook weakened when compared to the preceding quarter or the same period a year earlier. The survey compiled data from 3,159 employers and provided insights into employment trends in the country. The Net Employment Outlook (NEO) is measured by subtracting employers planning layoffs against those planning to hire. 

Region Based Results

In terms of hiring intention, the northern part of the country reported the most optimistic outlook at 36 per cent. The western region followed closely at 31 per cent, while the southern region reported an outlook of 30 per cent. The least optimistic outlook was reported by the eastern region at 21 per cent.

On comparing the data on a year-on-year (YoY) basis, all sectors reported a decline,  reported Moneycontrol.

Industry Based Findings

The hiring sentiment remained most optimistic amongst large organisations with a workforce of 1,000 to 4,999 employees as the firms reported a NEO of 42 per cent. Small organisations with 50 to 249 employees and medium organisations with 250-999 employees clocked a NEO of 34 per cent each, followed by large enterprises with a NEO of 30 per cent. 

However, across the industry, an overall decline was witnessed when a comparison was made with the corresponding period a year earlier. Small industries reported no change on a YoY basis.

Sector Based Sentiment

Sector-wise, the survey found that the financial and real estate industries led in terms of employment generation and hiring intention, followed by healthcare and life sciences. Meanwhile, the communication services and transport, logistics, and automotive sectors clocked a weak outlook at 17 per cent.

Commenting on the survey findings, Sandeep Gulati, India and Middle East MD, ManpowerGroup, noted, “The global slowdown has been impacting the IT sector in India for quite a while. Added to the circumstances, is the political uncertainty looming over the country due to general elections during data collection of this survey. Clearly, employers are being cautious in their short-term resource planning.”