SMEs And Educational Service Sector Registers A Steep Climb In Hiring Intent: Report The intent to hire by SMEs as well as educational services sector has improved up by 6 and 7 percentage points from April-September 2020, respectively
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The easing of the lockdown and the resultant opening up of the economy is having a positive impact on the employment outlook, stated TeamLease Employment Outlook Report for third quarter (Q3) on Wednesday.
According to the report, while the large business and the medium-size businesses continue to lead in the overall intent to hire, it is the small, medium enterprises (SMEs) that have recorded significant growth in the current quarter (October-December 2020). The hiring intent of SMEs has nearly doubled by 6 per cent from the previous half-year (April- September 2020) indicating a recovery in the sector. Similarly, the educational service sector continues to take the lead in terms of sectors that are planning to strengthen their talent pool. The intent to hire by the sector has grown by 7 per cent in the current quarter (October-December, 2020).
"India Inc is on a gradual recovery path. Though we are yet to reach the pre-COVID levels the economy is rebounding and this cautious optimism is reflecting in the hiring scenario as well. Most of the sectors intend to ramp up their hiring. While signs are encouraging, still too early to predict how Q4 shall pan out given traditionally it is a tepid hiring quarter," commented Rituparna Chakraborty, co-founder and executive vice president, TeamLease Services.
A comprehensive study analyzing the hiring intent across the different sectors, cities and hierarchies, as per the report the overall the intent to hire seems to be moving in the upward direction. The intent to hire has registered a 3 per cent point jump. Further, out of the 21 sectors reviewed all have indicated a positive hiring intent of varying magnitudes indicating a recovery of the employment scenario. Some of the sector that is leading in terms of the intent to hire is healthcare and pharmaceuticals, educational services, e-commerce and technology startups and knowledge process outsourcing.
The optimism is not restricted to sectors; the intent to hire across hierarchies is also on a positive growth trajectory. More than 30 per cent of the respondents indicated an intent to hire talent at senior levels. Respondents were also keen on ramping up their mid-level by 20 per cent and junior-level by 18 per cent talent. But the biggest growth in hiring intent has been in the entry-level. Though only 14 per cent of the respondents have indicated intent to hire entry-level talent, the section has registered an 8 per cent point growth from the period April-September, 2020.
The key findings of the study on the India front is the overall "Intent to Hire' metric seems to have turned the corner and is set to witness a noticeable 3 per cent increase over the October–December 2020-21 quarter whereas in metro and tier I cities are likely to benefit significantly from the unlock initiatives with a 5 per cent increase in Intent to Hire.
Barring for rural market which is muted, all the other 3 geographies – metro, tier I, tier II and tier III are showing positive hiring intent. In fact, the hiring intent in metros and tier I cities has increased by 5 per cent point from the previous half-year (April- September 2020). From a city point of view, apart from Bangalore with an 8 per cent point increment, Ahmedabad has also registered positive growth. While Ahmedabad maybe 5th in the overall contribution, with a 8 per cent point increase from the previous half year, it is on par with Bangalore in terms of growth. Dwelling deep into the profiles, while blue collar continues to be the sought after profile, the stress from businesses to revive the market is having a good impact on the sales and marketing roles. The intent to hire this profile has increased by 8 per cent points.