Hiring gathers pace in July; recruiters see more gains

Hiring gathers pace in July; recruiters see more gains thumbnail
NEW DELHI: Activity in the job market is probably picking up, with big recruitment firms witnessing more than 10% increase in July hiring compared with a year earlier. They predict the growth to gain pace going ahead, helped in part by the positive impact of GST on the economy.

Sectors that are driving hiring include banking and financial services, ecommerce, consumer goods and telecom.

Manufacturing, IT and industrial services, which were subdued on the jobs front, are also likely to look up in the next few months, according to executives from recruitment firms such as ABC Consultants, Monster, TeamLease, Quess and Randstad India.

The new indirect tax system that India rolled out on July 1 didn’t result in any uncertainty in the jobs market, as demonetisation had immediately after the note-ban announced late last year. In fact, several executives that ET spoke to expect GST to have a positive impact.

“Job market reacted negatively to demonetisation, but this is not so in the case of GST. On the contrary , industry leaders are bullish of a post-GST world, and are expecting business to look up in the months to come,“ said Shiv Agrawal, managing director, ABC Consultants.

The Monster Employment Index for July 2017 charted 13% year-on-year growth in hiring.“This is the highest recorded growth this year,“ said Sanjay Modi, Monster’s MD for Asia-pacific APAC and the Middle East.

Sectors like BFSI, telecom, home appliances and FMCG are driving the expansion. BFSI seems to be leading this growth with a 43% increase in hiring in July , according to Monster. “This could be attributed to the increased emphasis on digitisation that altered the dynamics of the sector in India,“ said Modi.

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