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India's job market is experiencing a robust resurgence, fueled by a year-on-year (YoY) increase of 11% in hiring activity in May 2024 compared to May 2023. This positive trend is particularly pronounced in tier-2 cities, according to the latest foundit Insights Tracker (fit) released by foundit (formerly Monster APAC & ME). These emerging hubs are outpacing even metropolitan areas in terms of growth.Cities like Kochi, Coimbatore, and Jaipur are leading the charge in creating new jobs.
This phenomenon can be attributed to several key factors:
Infrastructure Development: Investments in infrastructure are transforming tier-2 cities into attractive destinations for business expansion. Improved connectivity, transportation networks, and access to amenities are creating a more supportive environment for companies to operate.
Favorable government policies: Government initiatives are playing a crucial role in promoting tier-2 cities as industrial hubs. Policies like the Production Linked Incentive (PLI) scheme are incentivizing manufacturing companies to set up base in these locations, leading to a surge in job creation.
Burgeoning talent pool: Tier-2 cities boast a large pool of skilled and eager professionals. This readily available workforce is attracting companies seeking to expand their operations and tap into diverse talent sets.
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Improved Quality of Life: Tier-2 cities often offer a lower cost of living compared to metros, making them a more affordable option for both businesses and employees. Additionally, these cities are increasingly focusing on improving the quality of life with better housing, healthcare, and educational facilities.
Tier-2 Vs. Metros (Annual Hiring Trends)
Which sectors are hiring?
According to the tracker, tier-2 cities are seeing stronger growth rates in sectors like Production and Manufacturing (29%), IT- Software & Services (17%), Real Estate (8%), and Education (8%), where recruiters are seeking diverse talent with specialised skill sets. Metro cities have shown an affinity for hiring from IT-Software & Services and Advertising, MR, PR industries, due to the uptick in the demand for IT service providers and digitalisation, signalling a recovery from the layoffs and reduced bench strength.
Average salary
As far as the salary trends for metros and tier-2 cities are concerned, the average minimum salary in a metro city ranges from Rs 4.83 lakh per annum to Rs 6.63 lakh, while the average maximum salary ranges between Rs 8.09 lakh per annum, to Rs 15.98 lakh per annum. Meanwhile, the average minimum salary in a tier-2 city ranges from Rs 4.01 LPA to Rs 5.43 LPA and the average maximum salary ranges from Rs 7.12 LPA . to Rs 11.01 LPA.
India's Production, Manufacturing, and Telecom Sector Sees Hiring Revival
Production and Manufacturing sector witnessed a (47%) YoY surge in hiring, fueled by various factors, including the growth of the large modern manufacturing in India, aided by government push in PLI, infrastructure development, and policy intervention on imports/exports. The increased demand is evident not only within the sector but also in related industries such as Home appliances and Electrical components, which witnessed a 35% growth in hiring.
Telecom/ISP sector has seen notable growth over the past month and on an annual basis, recording a 9% YoY growth. This surge is largely credited to heightened annual investments in telecommunication services and the relaxation of FDI norms. Moreover, India's telecom landscape is expanding, driven by rising demand for end-user applications and advancements in markets such as IoT, cloud computing, data centers, and the upcoming 5G technology. Additionally, the country is experiencing a significant uptick in internet usage, further fueling the sector's growth.
The Healthcare industry has also shown a revival, witnessing a (29%) YoY increase and a (4%) monthly increase in hiring. Meanwhile, sectors such as Agro-based industries (-16%), Shipping/Marine (-30%), FMCG (-9%), Import/Export (-16%) saw a yearly downtrend in hiring. Retail (18%), Oil/Gas/Petroleum (22%), Real Estate (20%), and IT (20%) industries showcased moderate growth in hiring.
Digitalisation and social media popularity uplift Arts/Creative job roles; while Customer Service job roles face headwinds
With the growing popularity of digital and social media marketing, there has been a month-on-month surge in demand for Arts/Creative professionals (4%), particularly for positions such as Graphic Designers and Animators. Organisations today are seeking to increase website traffic and convert online leads with the help of skilled and knowledgable Marketing and Communication specialists, who have also recorded a (16%) YoY increase in hiring. The job roles showing a downward trend in hiring include Customer Service (-25%), due to the adoption of AI-based chatbots and virtual assistants.
Other job roles that have showcased growth in hiring include Hospitality & Travel, a (23%) year-on-year increase and a (1%) monthly increase from April 2024 to May 2024. The growth is driven by a significant emphasis on sustainable development and increased demand at airports and from hotels.
Hiring of senior and mid-senior level professionals witnesses a growth
According to the tracker, demand for mid-senior level professionals with 7 to 10 years of experience grew by 9% year-on-year. Senior-level professionals with more than 15 years of experience saw a 17% year-on-year increase in hiring. Additionally, hiring for Associate roles with 4-6 years of experience grew by 2% over the last month as well as annually.
