White-collar jobs decline 8.6% in Sept
IT sector is facing global headwinds and has seen a decline in the number of hiring in the last few months.
Amid the negative trend in the Information Technology (IT), Business Process Outsourcing (BPO), ITES and FMCG sectors, the recruitment of white collar jobs declined by 8.6 percent on an annual basis in September. According to jobs portal, Naukri.com there was an increase of about six percent in recruitments on a monthly basis.
According to Naukri.com’s monthly job seek index, 2,835 recruitments were made for office work in September, which is 8.6 percent less than the same period last year. Last year, 3,103 people were recruited in the same period.
According to the survey, the IT sector is facing global headwinds and has seen a decline in the number of hiring in the last few months. Also, BPO/ITES and FMCG have seen a decline of 25 percent and 23 percent, respectively, during this period.
Pawan Goyal, chief business officer, Naukri.com, said that although the IT sector continues to be impacted, the strong growth in the banking sector is good news. The six per cent sequential increase in the composite index underlines the resilience of the Indian job market based on regional diversity.
The hospitality and travel industry witnessed maximum growth as families and solo travelers traveled extensively during the monsoon season, the report said. Meanwhile, the report found that small cities remained ahead of metros in terms of job creation in September 2023. Vadodara, Ahmedabad and Jaipur saw an increase of four per cent, three per cent and two per cent, respectively, in recruitment in September compared to the same month last year.
Jobs may decrease further
The performance of India’s big IT services companies is expected to be slow in the second quarter of the current financial year. Due to this, there is a possibility of further decline in the recruitment of office workers in the coming months. Analysts are expecting slow sequential performance of big IT companies. He says that the weakness seen in the first quarter is expected to continue. ICICI Securities estimates that the growth of the top five companies on a quarterly basis in the July-September period of 2023-24 will be between -1 per cent (Tech Mahindra) to +1.9 per cent (HCL Tech). Motilal Oswal Financial Services said in its earnings preview that IT services industry growth is expected to remain weak in the second quarter of FY 2023-24 as macroeconomic uncertainty continues to weigh on discretionary spending.