Is the worst phase for the job market over?
As a result of the stalled economic activities due to covid-19, globally, many companies were shuttered and employees were laid off
The covid 19 pandemic resulted in job losses and unemployment across sectors, but hiring activity is likely to resume in the coming months. Unemployment in urban sector rose 20.9 percent during the April-June quarter of the previous fiscal when the covid outbreak was at its peak versus 9.1 percent in the year ago period.
Periodic Labor Force Survey (PLFS) highlights the impact if covid-19 pandemic on the job market.
According to the survey, as a result of the pandemic and strict lockdown imposed by the government to contain the infection, the unemployment rate surged to 20.9%. Gender-wise classification shows that 20.8% of the men were unemployed during April to June 2020, while 21.2% of the women were unemployed.
According to Kiran Laxmikant, CEO, Head Hunters India, a staffing firm, the pandemic has wreaked havoc on all sectors. From hiring to employee retention and operations, covid-19 has changed everything for companies.
As a result of the stalled economic activities due to covid-19, globally, many companies were shuttered and employees were laid off. However, with the vaccination picking-up pace, the restrictions have been lifted and economic activity has resumed.
While hiring across sectors is picking up pace, can we expect a large number of new jobs going forward? Is the worst phase of the job market over?
Hiring activities resumed
According to different studies and surveys, hiring activity across sectors in India nearing pre-covid levels.
A recent survey by EdTech Startup Scalar states 90% of the companies will start hiring at pre-covid pace this year. More than 50% of the companies involved in this survey said that they will recruit more people in the first quarter of 2021 than in the same period year ago.
However, experts believe that even though the hiring is picking-up, the pace is still sluggish.
According to Laxmikant , India is on a slow-recovery path. The situation has also changed with the introduction of the vaccine and will definitely improve second quarter onward, she added.
This year, hiring will depend on how companies have performed in the current fiscal, says Rajneesh Singh, Managing Partner, Sinpliacar, a HR consultancy.
The sectors that are at the forefront of hiring include technology, banking and financial services and FMCG sector.