The Indian employment market is poised for a notable 6.33% increase in workforce expansion or new job creation in the first half of FY25 (April-September), up from approximately 4.2% in the latter half of FY24 (October-March). This positive outlook emerges from a survey conducted by Teamlease Services among 1,500 companies across 23 industries, highlighting workforce expansion as a critical indicator of economic growth, business confidence, and organizational strategy.
According to the survey findings, 56% of surveyed employers anticipate growing their workforce in the coming months, while 23% plan to maintain current manpower levels through replacement hiring. Economists and company officials attribute this uptick in hiring to robust corporate turnover, projected GDP growth exceeding 7%, increased capital expenditures, and sustained public spending despite ongoing global macroeconomic challenges, caution, and sector-specific layoffs.
Kartik Narayan, CEO of staffing at TeamLease Services, links the optimistic hiring sentiment to expectations of a favorable monsoon and its potential impact on rural and semi-urban consumption, which lagged last year. Industries expected to see the greatest workforce growth include construction & real estate (11.5%), travel & hospitality (9.86%), and electric vehicles & infrastructure (9.17%). Key sectors planning substantial workforce increases include healthcare, pharma, automotive, manufacturing, engineering, and infrastructure.
Niranjan Hiranandani, managing director of Hiranandani Group, underscores the surge in demand for manpower driven by growth in construction, real estate, infrastructure, and housing sectors. Despite ample capital availability, he notes a severe shortage of skilled workers compared to previous years, a significant challenge for the industry.
Despite geopolitical tensions and high inflation, strong investment demand coupled with a focus on technology and skills development across sectors is driving job creation, particularly in emerging fields. Nearly two out of five organizations are prioritizing skills enhancement to equip their workforce for future technological advancements.
Madan Sabnavis, chief economist at Bank of Baroda, highlights the expanding job opportunities in sectors like BFSI, hospitality, tourism, and construction, driven by physical expansion and growth prospects. He anticipates a positive trajectory in employment figures across blue-collar and white-collar segments in the coming months.
Overall, the employment outlook for India underscores a buoyant market poised for growth, bolstered by sector-specific expansions, technological advancements, and strategic organizational initiatives.