India's job market looks bullish with 44% of companies planning to add more staff in the next three months as corporates gear up to bring workers back after the pandemic, a survey said on Tuesday.
According to the latest ManpowerGroup Employment Outlook Survey released by ManpowerGroup India, employers report a Net Employment Outlook of 44% - the most optimistic outlook in seven years.
The Net Employment Outlook is derived by subtracting the percentage of employers expecting a decrease in hiring activity from the percentage of employers anticipating an increase in hiring activity.
The survey of 3,046 employers indicates many companies are planning to increase their headcounts before the end of the year, expecting pandemic restrictions to ease and demand for products and services to rise.
"Corporate India is showing healthy signs of recovery and an overall positive sentiment is gripping the market. Many of the deep-rooted structural factors that have sustained the Indian economy over the years like geopolitical stability, diversified economy, demography, etc, are likely to play a pivotal role in the new normal," said Sandeep Gulati, Group Managing Director of ManpowerGroup India.
Hiring intentions improved in all sectors quarter-over-quarter with services, manufacturing and finance, insurance and real estate sectors reporting some of the most optimistic outlooks.
"Vaccine rollouts gaining tremendous momentum with most of corporate India due for the second vaccine coupled with the onset of the festive season may be the probable cause of the spike in optimism.
"The intent into action, however, needs to be observed considering the fear of the third wave and the continued talent shortage that most industries are finding difficult to bridge," Mr. Gulati said.
The survey further noted that hiring prospects have strengthened in all four regions when compared with the previous quarter.
Employers in all four regions expect to grow payrolls during the fourth quarter of 2021. The strongest hiring pace is anticipated in the West, with a Net Employment Outlook of 49%, followed by East (45%) and North (43%). While the outlook for the South is 37%.
Notwithstanding the bullish market sentiments, talent shortage continued to haunt corporates. As many as 89% of employers are struggling to fill vacancies in India, above the global average of 69%, the survey said.
As per the survey, the most popular strategies to overcome hiring challenges include offering training, skills development and more flexibility in work schedules, and location.
A significant percentage of employers have planned to invest in upskilling of technical skills for employees, it said.
