Hiring slowed down in the IT sector this festive season: Report

• Other than IT, telecom and healthcare sectors also witnessed a notable decline in hiring in October this year as compared to last year.
  
• The insurance sector saw a phenomenal year-on-year growth in hiring at 93% this festive season.
  
• The growth graph for hiring in the national capital was found to be flat as compared to last year.

The slowdown is real in India’s information technology industry. The sector, which created the maximum jobs over the last two years, is seeing a hiring slowdown now. According to the Naukri Jobspeak index report, hiring was down 18% this festive season in October as compared to last year.

Bangalore, the IT hub of India saw the maximum drop in hiring at 16% in the IT sector this October, as compared to the same month last year. A similar trend was seen in Hyderabad (12%) and Pune (11%) during the same period.

IT majors in India have cut down in hiring by at least 57% in the second quarter. Wipro reported the maximum cut of 95%, followed by TCS at 58%. This is in spite of the fact that attrition in the IT industry is high. Infosys and HCL Tech witnessed the highest attrition rates at 27% and 23% respectively.

Telecom, healthcare hiring slowed down too

Other than IT, telecom and healthcare sectors also witnessed a notable decline in hiring sentiments by 19% and 13% respectively in October this year as compared to last year.

“The temporary deceleration in hiring activity was expected given the festive season, however when you compare the data with last year’s festive window (Nov’21), the Index is a healthy 13% ahead which is reassuring,” said Pawan Goyal, chief business officer, Naukri.com.

In comparison, the insurance sector in India saw a phenomenal year-on-year growth in hiring at 93% this festive season. BFSI, oil, travel and hospitality, real estate and auto are some of the other sectors which continued to show upward hiring trends this season.

“It is also interesting to note that most key industries maintained hiring expansion during this month which is likely to only get stronger as year-end approaches,” Goyal added.

Delhi stayed flat in hiring

The growth graph for hiring activity in the national capital was found to be flat this festive season as compared to last year’s. Whereas, other metros like Mumbai and Kolkata continued to grow by 8% and 15% respectively.

Amongst non-metros, cities like Jaipur, Kochi, Vadodara, and Coimbatore saw an uptick in demand for white collared professionals, says the report.

While demand across experienced professionals stayed neutral in October this year, senior professionals with over 13 years of experience saw an uptick in demand growing by 6% over last year.

Meanwhile, demand for freshers stayed flat and demand for mid-level professionals (4-12 years) declined by 4%.

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