India intends to hire people more in the July-September quarter: TeamLease

• New hires are likely to be highest for entry level and junior positions in India.
  
• Most jobs will likely be created in Bangalore, Chennai, Mumbai, Delhi and Hyderabad.
  
• Large companies show the highest intent to hire, while small businesses exhibit the highest growth in the intent to hire.
  

India Inc may hire more people in the second quarter than it did in the first. According to a TeamLease report, hiring intent – or the percentage of employers likely to hire employees – rose to 61% for the July-September quarter, from 54% in April-June 2022.

However the new hires are likely to be for entry level and junior roles, where the intent to hire is highest. The hiring intent drops progressively for mid-level jobs, hitting the lowest for senior positions, according to TeamLease’s Q2 Employment Outlook Report.

“India’s GDP for FY 2021-22 touched 8.7% after contracting by 6.6% during the previous fiscal. This, and a slew of public investments in the PLI (production-linked incentive) schemes – in solar cells manufacturing and in bulk drugs for instance – are likely to provide a fillip to job creation in the coming quarter,” the report said.

The Government of India’s ₹2.65 lakh crore stimulus package to generate jobs and provide liquidity support across tourism, aviation, construction and housing, is also aiming to bring revenue and jobs in these sectors to the pre-pandemic levels, the report added.

Hiring intent, however, was highest in the IT sector, followed by educational services, e-commerce and allied startups, healthcare and pharmaceuticals, and telecommunications.

Most of these jobs are likely to be in the metros – Bangalore, Chennai, Mumbai, Delhi and Hyderabad, in that order. Pune, Ahmedabad, Kolkata have ‘moderate’ intent, the report added.

“The bottomline is that, rural places and tier-3 cities do not have as much hiring intent as bigger cities, and the sluggish increase suggests it could take quite a while for opportunities to grow any further in these geographies,” the report said.

The survey was conducted across 14 Indian cities and 23 sectors, covering 865 small and medium plus large enterprises.

According to TeamLease, the IT sector had the highest attrition rate of 22% during April-June 2022. E-commerce and allied startups came a close second. The other sectors with high attrition rate were EVs, FMCG and the textile sector.

The hiring intent for engineering roles saw a 13% increase. The job role that’s most in demand is marketing that jumped from 53% to 63% in the second quarter.

Large companies show the highest intent to hire, and small businesses exhibit the highest growth in the intent to hire. The survey also discovered that unicorns and ‘Soonicorns’ (soon-to-be unicorns) showed the highest intent to hire followed by “mature” category businesses and startups.

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