According to the ManpowerGroup Employment Outlook Survey released, the labor market is indicating strong sentiments in the fourth quarter of 2022. 64% expect to increase their staffing levels, 10% anticipate a decrease in hiring intent and 24% do not anticipate any change, resulting in a seasonally adjusted Net Employment Outlook of +54% which is the second in the global arena, after Brazil which indicates 56%. When compared to the same period last year, hiring sentiments have improved by +10 percentage points while there is a 3 percentage points growth when compared to the last quarter.
Hiring markets in India are ranked first in the APME region, 24-points above the global average.
Employers in two (North and South) out of four regions showed equally strong pace with a Net Employment Outlook of +56% whereas the outlook for West stands at 53% and East is +47%.
Commenting on the findings, Sandeep Gulati, Managing Director, ManpowerGroup India opines, “India’s deep-rooted fundamentals are healthy and robust. Despite the short-term setbacks, growth-enhancing policies, increased investment in infrastructure, rising exports, etc. will nullify the impact in the mid and long-term. Externally, the current global geopolitical tailwinds are expected to aid the growth of developing countries like India as predicted by many experts. However, this is also impacting our IT sector adversely with employers treading on a cautious path amid speculations of a global slowdown.”
“We continue to face the unparalleled demand-supply gap as indicated by our Talent Shortage Survey of last quarter. Priority focus on soft skills coupled with an analytical approach and technical skillsets is making it more and more difficult for employers to match talent to the available opportunities. Universities and Educational Institutes need to realign their curriculum to the needs of the job market thereby providing increased employable youths to corporate India” added Mr. Gulati.
Hiring Plans by Region
Employers in all four regions expect to grow payrolls during the fourth quarter of 2022. The hiring pace is similar in 2 out of 4 regions (North and South) where the Net Employment Outlook stands at +56%. Dynamic hiring activity is also forecast for the West and East where the outlook is recorded at +53% and +46% respectively. Hiring prospects strengthen in all four regions when compared with the previous quarter and the same time last year except for West which indicated no change compared to the last quarter.
Hiring Plans by Industry
At the beginning of this year, four new industries were added – Primary Production, IT and Technology, Not For Profit, and Restaurants and Hotels. An increase in payrolls is forecast for all eleven industry sectors during the coming quarter. IT and Technology sectors continue to report strong hiring intentions with a Net Employment Outlook of +63% followed by Banking, Finance, Insurance, and Real Estate (+61%).
Hiring Plans by Size
Indian hiring decision-makers in all 4 organization sizes anticipate an increase in staffing levels in Q4 2022. Since the last quarter, hiring markets have strengthened in 2 of 4 organization sizes, weakened in one, and seen no change in the last. Since this time last year, hiring markets have strengthened in 3 of 4 organization sizes and weakened in one.
Hiring managers across APAC anticipate the most vigorous hiring intentions globally (+40%):
- India (+54%), China (+46%), and Australia (+38%) report the strongest Outlooks
- APAC is the only region where hiring intentions improve from last quarter (+6%), and show a 20% increase from Q4 2021
- China and Hong Kong continue to bounce back from COVID-19 lockdowns prevalent last quarter, both growing 15% since Q3.
