According to a recent survey, employers in India have expressed bullish hiring sentiments for the first quarter of 2024, with 37% planning to increase their workforce. The survey, conducted by ManpowerGroup and covering nearly 3,100 employers globally, revealed that India has the highest Net Employment Outlook (NEO) among 41 countries.
For the period of January to March 2024, the NEO, calculated by subtracting the percentage of employers expecting staff reductions from those planning to hire, stood at 37%. This represents a 5% increase compared to the same period in 2023 and remains consistent with the previous quarter.
Factors contributing to this positive outlook include buoyant domestic demand, ongoing private investments, and stability in the political arena. Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, noted that India’s economic growth is becoming a reality with these favorable conditions.
India, along with the Netherlands, reported the strongest net employment outlook at 37%, followed by Costa Rica and the US at 35%, and Mexico at the third position with 34%. The global average stood at 26%.
Different industries exhibited varying outlooks, with the Financial and Real Estate sector leading with a robust outlook of 45%, followed by Information Technology (44%) and Consumer Goods and Services (42%). The least optimistic prospects were observed in the Energy and Utilities sector, reporting a 28% outlook for the first quarter.
Regionally, the western part of India led in job demand with an outlook of 39%, followed by the northern region at 38%. The eastern region reported the weakest hiring intentions.
The survey highlighted challenges in finding skilled talent, with Japan experiencing the most significant impact, where 85% of employers reported difficulty finding skilled talent. In India, 81% of employers faced challenges in this regard, with the Transport, Logistics, and Automotive sectors being the most affected, followed by the Information Technology sector.
To address these talent challenges, employers are adopting strategies such as offering greater work flexibility, increasing wages, and exploring new talent pools. The top five most in-demand skills identified in the survey are IT & Data, Sales & Marketing, Engineering, Operations & Logistics, and HR.
As organizations plan their HR objectives for 2024, the survey emphasizes the importance of employee well-being, recruitment for skilled roles, and the adoption of AI and technology. However, challenges persist in training staff to leverage AI and identifying roles that can effectively utilize these advancements.
