Employers forecast bullish Q4 hiring intentions: ManpowerGroup survey

Public administration and education, wholesale and retail trade and services sectors are expected to lead job market growth during October to December, according to the ManpowerGroup Employment Outlook Survey released on Tuesday.

The survey of 5,131 employers across India indicates optimistic hiring plans for the upcoming three months with medium-sized companies as well as employers in the East region forecasting the strongest outlook.

"A slew of measures announced by the government is multi-sectoral and multi-dimensional. The special focus is currently to boost the micro, small and medium enterprises (MSMEs)," said a spokesperson of ManpowerGroup India.

"Furthermore, the government is considering bringing legislation to ensure payments to MSMEs within 45 days of supplying a product. The minister has also asked global multilateral lending agencies to reduce the cost of capital for the MSME sector."

"According to our survey, India's job market overall looks bright when compared to the last quarter with a seasonally adjusted net employment outlook of plus 19 per cent. Workforce gains strengthen in all seven industry sectors in the coming quarter," added the spokesperson.

Public administration and education employers report the strongest hiring intentions with a net employment outlook of plus 27 per cent. Respectable payroll gains are also forecast in two sectors with outlooks of plus 25 per cent in the wholesale and retail trade sector and plus 22 per cent in the services sector.

Positive hiring opportunities are expected in the manufacturing sector and the mining and construction sector where outlooks stand at plus 16 per cent and plus 13 per cent, and in the transportation and utilities sector with an outlook of 11 per cent.

The survey said hiring is expected to increase in all four regions during the coming quarter, improving when compared with both the previous quarter and this time one year ago. The strongest labour market is expected in the East, where the net employment outlook stands at plus 38 per cent.

Steady workforce gains are also forecast in all the other three regions, South, West, and North with outlooks of plus 19 per cent, plus 18 per cent and plus 16 per cent respectively. In the East, employers report quite a strong improvement of as high as 29 percentage points when compared with the previous quarter.

"Opportunities are expected to remain favourable for candidates with the right skills and flexibility. All these measures are likely to give a major boost to the economy, industrial activity, and overall growth trajectory, said the spokesperson.

"However, the lack of desired skillsets is what makes it difficult for Indian employers to fill job positions. Corporate India's hiring intention is better as employers collaborate with the education bodies to ensure a skilled labour pool in the coming years," added the spokesperson.