Job growth in Indian IT sector declines 25%
The New Year begins on a cautiously optimistic note as Naukri JobSpeak, the country’s premier job index, emerged at 2762 tabling a 2% growth in Jan’23 compared to 2716 in Jan’22. The Indian job market continues to show resilience and stability. The 2% growth is noteworthy as it has been recorded despite a 25% decline in IT sector hiring. The dip in IT sector hiring has been more or less compensated by a hiring spree in the Non-IT sectors such as Insurance, Oil, Hospitality and Banking.
Non-IT sectors lead the hiring spree in January 2023
Non-IT sectors are off to a flying start, recording a double-digit growth at the beginning of 2023. The most prominent is the Insurance sector, which has recorded 93% growth. The other Non-IT industries that recorded an upward trend in hiring activity include Oil (55%), Hospitality (53%), Banking (37%), Real Estate (31%), Auto (29%), BPO (16%) and Healthcare (10%).
Selected Non-IT sectors that showed cautious hiring sentiments are Telecom, Retail, and Pharma with a 9%, 8%, and 4% dip in hiring activity respectively vs. last year.
Hiring in IT industry continues to consolidate
Due to corrections in hiring in the IT industry, job growth in the Indian IT sector has declined by 25% vs. last year. The hiring intent declined across both large IT giants and unicorns, while trends across other IT startups remained stable vs. last year. Regarding the hiring dip across experience levels, fresher hiring faces the biggest slump followed by a mid-experience hiring decline, while hiring across senior levels (greater than 12 years of experience) remained stable in IT.
Non-metro cities continue to shine in driving job creation
Non-metro cities continue to drive the hiring activity in the New Year. Amongst non-metros, Ahmedabad leads the way in hiring trends recording 40% growth in new job creation vs. last year, mainly driven by Insurance and Healthcare sectors. Baroda follows with 37% growth in new job creation dominated by Banking and Construction sectors. Jaipur recorded a 14% growth in new job creation mainly led by BPO and Banking sectors.
Amongst metro cities, Mumbai and Delhi recorded positive hiring trends registering 14% and 10% growth respectively in new job creation vs. last year. Insurance sector has been a key sector witnessing hiring spree across Delhi and Mumbai. On the contrary, metro cities like Bangalore, Hyderabad, Pune, and Chennai, which are heavily dependent on the IT sector for driving job creation, have shown a decline of 20%, 12%, 11%, and 6% respectively vs. last year. Non-IT sectors that are most significantly driving job growth in each of these metros are Insurance, Banking, Auto and Oil.
Senior professionals continue to remain in demand
In the era of hiring corrections, increasing demand for senior professionals with 12+ years of experience continues to dominate the hiring activity at the beginning of 2023, recording more than 20% growth vs. last year. Hiring activity remains stable for freshers and mid-experience level professionals.
Commenting on the report, Pawan Goyal, Chief Business Officer, Naukri.com, said, “As the year begins, Non IT sectors hold the fort for hiring activity in India with Insurance, Oil, and Hospitality flying high. Interestingly, IT-linked metros, which were the main growth drivers last year, were overshadowed by emerging cities like Ahmedabad and Baroda. Overall, this gives a multi-dimensional outlook to the Indian Job market and makes us optimistic about the New Year.” CXOtoday
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