Employment outlook depreciated from 75 in last quarter to 72 in the current quarter
Bangalore,, which used to be among the most positive in employment outlook till a few quarters ago, has this time been reported as the worst-affected city in terms of employment as well as business outlook during the January-March 2013 quarter.
The latest TeamLease-IIJT Employment Outlook Report doesn’t make for a happy reading. According to the report, based on interviews with HR managers of 640 companies, both net employment and business outlook have registered a 2 point and 1 point drop, respectively in their indexes respectively, indicating stagnant hiring outlook in the forthcoming quarter.
On the functional front, engineering and IT seem to be bearing the brunt of the contraction. However, sales, marketing and blue collar will be the most sought-after functions over the next three months.
From a sectoral perspective, with the exception of infrastructure, IT & ITeS, the employment outlook seems flat across most sectors.
With three point and one point dip in the employment and business outlook indices respectively, the employment outlook in Bangalore has depreciated from 75 in the last quarter to 72 in the current quarter, the study added.
According to the report, the year 2012 remained mostly stagnant both in terms of employment and business outlook. The Net Employment Outlook for January-March 2012 was 71% and for the quarter October-December 2012 was 79%, indicating a slow growth in net employment.
Also, from the sectoral perspective, except for healthcare and pharma, retail and FMCG experiencing a quarterly spike, most sectors remained stagnant during the year. However, a positive trend noticed was a drop in attrition across sectors, bringing in stability to the organisations.
Sangeeta Lala, Senior Vice President and Co-Founder TeamLease Services, said: “The slow GDP growth rate coupled with the recession in international market seems to be taking its toll on the employment scenario. Most of the sectors have reported stagnant growth in terms of hiring intent in this quarter. However, the recent reforms announced in the various sectors are expected to lift the market and result in more employment in the future.” Though the outlook for January-March 2013 is sluggish, it will be momentary and the net employment would improve for 2013. In fact, 2013 would see a burgeoning demand for niche skills like analytics, telecom, design and profiles like R&D.
Sectorally, retail, consumer durables, engineering, real estate, construction, biomed & pharma are likely to hire more. Another trend witnessed was HR restructuring at IT companies. Apart from the niche technologies that were in demand, there was a 50-60% increase in demand for sales professionals in IT companies. Also, the year gone by saw companies laying stress on off-campus placements rather than campus placements.
Further, the report reveals that though the employment outlook is largely muted across most of the sectors and functions, there is a growing demand for superior or better quality skills.
Source: Business Standard