India's 37% of businesses planning to expand their workforce: Report
India's hiring sentiment for the January-March 2024 quarter is among the strongest globally, with 37% of employers planning to expand their workforce, according to the ManpowerGroup Employment Outlook Survey. The Net Employment Outlook (NEO) for India is at 37%, a 5% increase from the same period in 2023 and stable compared to the previous quarter. Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, attributed this optimism to buoyant domestic demand, private investments, and political stability.
India and Netherlands lead global NEO rankings
The global NEO rankings place India and the Netherlands at the top with a 37% outlook, followed by Costa Rica and the United States at 35%, and Mexico at 34%. The global average is 26%. The survey covered nearly 3,100 employers from various industries and geographical areas. In India, businesses in the Financial and Real Estate sector reported the brightest outlook at 45%, followed by Information Technology (44%) and Consumer Goods and Services (42%).
Regional variations in job demand across India
Regionally, western India leads in job demand with an outlook of 39%, followed by northern India at 38%. The eastern region reported the weakest hiring intentions. Despite the overall positive outlook, employers face challenges in filling open positions. In India, 81% of employers reported difficulty finding skilled talent, particularly in the Transport, Logistics, and Automotive sectors, followed by the Information Technology sector.
Employers adapt recruitment strategies to address talent scarcity
To overcome talent scarcity challenges, employers are offering more work flexibility, increasing wages, and seeking new talent. The most sought-after skills are IT & Data, Sales & Marketing, Engineering, Operations & Logistics, and HR. Gulati said, "The survey is a reflection of the changing world of work where companies are in the transformational phase but IT talent with the desired skill sets are scarce." In India, hiring in the IT sector has reached an all-time low of 14%.
HR objectives for 2024 include AI and technology adoption
As organizations plan their strategic HR objectives for 2024, employee well-being, recruitment for skilled roles, and adopting AI and technology emerge as top priorities. Gulati added that training staff to leverage artificial Intelligence (AI) and narrowing down on roles that can take advantage of this advancement remains a concern. The focus on embracing technological advancements highlights the importance of adapting to the evolving job market and addressing skill gaps.
