India Ranks Sixth Globally in Employment Outlook for Q3 2024

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India’s employment outlook for the third quarter of 2024 ranks sixth globally, with 30% of businesses planning to expand their workforce, according to a survey by ManpowerGroup.

Employment Outlook Overview

India’s Net Employment Outlook (NEO) for the upcoming quarter is calculated at 30%, showing a decline of 6% from both the previous quarter and the same period last year.

This decline is attributed to employers’ cautious approach to hiring.

Global and Regional Comparisons

India stands 8 points above the global average in employment outlook.

The survey, which included 42 countries, revealed that Costa Rica has the highest hiring expectation at 35%, followed by Switzerland (34%), Guatemala (32%), Mexico (32%), and South Africa (31%). Conversely, Argentina and Romania reported the weakest NEO at 3%.

In the Asia Pacific region, India and China (28%) continue to exhibit the strongest employment outlooks, while Hong Kong (8%) and Japan (12%) reported the most cautious hiring intentions.

Factors Influencing Hiring Intentions

ManpowerGroup surveyed 3,150 employers in India about their hiring plans for the third quarter.

Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, highlighted the impact of the global economic slowdown and political uncertainty on the IT sector in India. “Clearly, employers are being cautious in their short-term resource planning,” Gulati stated.

Sector-Specific Trends

The real estate sector has seen a surge in investor interest, with a capital inflow of USD 1.1 billion, primarily driven by the residential sector.

“We hope the gap between the demand for specific skills and supply is bridged with strategic long-term talent planning in corporates in India,” Gulati added.

Regional and Organizational Insights

Hiring intentions in North India are the highest at 36%, followed by the West (31%), South (30%), and East (21%). However, all regions experienced a decline in hiring sentiments compared to last year.

Large organizations (1,000-4,999 employees) show the most optimism with an NEO of 42%, followed by small (50-249 employees) and medium (250-999 employees) organizations at 34%, and large enterprises at 30%.

Sector-Wise Employment Outlook

The financial and real estate sectors, along with healthcare and life sciences, exhibit the strongest hiring intentions.

In contrast, communication services and transport, logistics, and automotive sectors show the weakest outlooks.

Adoption of AI and Its Impact

Over 62% of employers have integrated AI, including generative conversational AI, into their operations. Senior leadership teams are highly optimistic about AI’s positive impact on business, with 80% expressing confidence, compared to 68% of frontline and factory workers.

Notably, 68% of employers plan to increase headcount due to AI and Machine Learning adoption in the next two years, especially in communication services, financial and real estate, industrials and materials, and information technology sectors.