ManpowerGroup Employment Outlook Survey reveals that Indian employers expect Q1 2017 hiring to remain active but project a considerably slower pace compared to last year. Employers in the South report strongest job prospects for the quarter ahead
Hiring intentions remain optimistic for the upcoming quarter and Outlooks remain positive in all sectors and regions
New Delhi – According to the ManpowerGroup Employment Outlook Survey released today by ManpowerGroup, the survey of 4,930 employers across India indicates that hiring activity is expected to continue at a strong pace for the first three months of 2017. However, opportunities for job seekers are expected to be considerably weaker than they were a year ago at this time. Overall, job prospects remain healthy in the majority of industry sectors surveyed.
AG Rao, Group Managing Director of ManpowerGroup India said, “The job market continues to sustain the momentum gained over the past few months. Undertaking several measures to stabilize, sustain and promote economic growth on continued basis is on the agenda of the government. There are continuous ongoing measures to improve ease of doing business and encourage industries to expand their operations, which in turn will help boost the job market.
“At present, the Indian economy is reaping benefits of its Manufacturing and Services sectors. Hiring activity will be led by IT and telecom while other sectors are likely to pick up the pace in the next few months. The growth can be attributed to sectors such as, IT-Software, ITeS and Healthcare. The job market continues to sustain the momentum in the digital age, however the initial slow pace of automation has picked up steam and job-seekers should be willing to upgrade themselves for gainful employment,” added Mr. Rao.
Employers in all seven industry sectors expect to grow staffing levels during 1Q 2017. The strongest labour market is anticipated in the Public Administration & Education sector, where employers report a Net Employment Outlook of +26%. Services sector employers also expect an active hiring pace, reporting an Outlook of +25%, while Outlooks stand at +24% and +23% in the Mining & Construction sector and the Manufacturing sector, respectively. The least optimistic Outlooks of +21% are reported in two sectors – the Finance, Insurance & Real Estate sector and the Transportation & Utilities sector.
Quarter-over-quarter, hiring intentions decline in five of the seven industry sectors. The most noteworthy declines of 13 and 11 percentage points are reported in the Wholesale & Retail Trade sector and the Services sector, respectively, while the Outlook for the Manufacturing sector is 6 percentage points weaker. However, hiring prospects improve by 5 percentage points in both the Mining & Construction sector and the Public Administration & Education sector.
When compared with 1Q 2016, employers report weaker Outlooks in all seven industry sectors. Steep declines of 26 and 25 percentage points are reported in the Transportation & Utilities sector and the Finance, Insurance & Real Estate sector, respectively, while the Outlook for the Wholesale & Retail Trade sector is 23 percentage points weaker. Elsewhere, Outlooks decrease by 19 percentage points in both the Public Administration & Education sector and the Services sector.
India’s Regional Trends
Staffing levels are expected to increase in all four regions during 1Q 2017. Employers in the South report the most optimistic hiring intentions with a Net Employment Outlook of +31%. Elsewhere, an active labour market is forecast in the North, with an Outlook of +27%, and in the West, where the Outlook is +21%. Employers in the East expect a steady hiring pace, reporting an Outlook of +18%.
When compared with 4Q 2016, employers in three of the four regions report weaker hiring plans. The most notable decline of 10 percentage points is reported in the West, while Outlooks are 9 and 5 percentage points weaker in the North and the East, respectively. Meanwhile, the Outlook for the South remains relatively stable.
Year-over-year, hiring intentions decline in all four regions. Employers in the North report a steep decrease of 32 percentage points, while Outlooks are 23 and 18 percentage points weaker in the West and the East, respectively. The Outlook for the South declines by 5 percentage points.
The research from ManpowerGroup indicates job seekers across the globe will likely find some opportunities through the first three months of 2017. Hiring activity is expected to continue in the majority of the world’s labor markets and most outlooks remain relatively stable or improve from three months ago and last year at this time. Altogether, employers in 40 of 43 countries and territories intend to add to their payrolls by varying degrees at the start of 2017, and the survey reveals few signs that uncertainty associated with the Brexit vote or the U.S. election will result in any significant labor market volatility. Instead, employers appear content to keep a watchful eye on marketplace conditions and adjust workforce levels according to their business needs.
Overall, forecasts are mixed in comparison to the Quarter 4 2016 and Quarter 1 2016 surveys. Hiring plans improve in 19 of 43 countries and territories when compared quarter-over-quarter, decline in 17, and are unchanged in seven. Outlooks strengthen in 20 countries and territories year-over-year, weaken in 18, and are unchanged in four. First-quarter hiring confidence is strongest in Taiwan, India, Japan, Hungary and Slovenia. The weakest forecasts are reported in Brazil, Switzerland and Italy.
Job gains are expected in nine of the 10 countries surveyed in the Americas. Hiring confidence strengthens in four countries, declines in four, and is unchanged in two when compared to the final three months of 2016. Year-over-year, hiring prospects improve in four countries but weaken in the remaining six. The strongest first-quarter hiring plans are reported in both Guatemala and the United States, while employers in Brazil expect payrolls to shrink for the eighth consecutive quarter and report the weakest hiring plans across the region as well as across the globe.
Employers expect staffing levels to increase by varying degrees in 23 of 25 countries in the Europe, Middle East & Africa (EMEA) region. When compared quarter-over-quarter, hiring plans improve in 12 countries, weaken in 10 and are unchanged in three.