Hiring intentions will decline in the quarter on a year-over-year and quarter-over-quarter basis, according to the ManpowerGroup Employment Outlook Survey, based on interviews with nearly 3,030 public and private employers.
During the quarter, 48 percent of employers expected an increase in their staffing levels, 16 percent expected a decrease in hiring intent and 34 percent did not expect any change in hiring, resulting in 32 The percentage is the net employment outlook.
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Compared to the same period last year (January-March 2022), the hiring sentiment has weakened by 17 percentage points and 22 percentage points over the previous quarter.
Sandeep Gulati, managing director, ManpowerGroup India, said, “Employers are cautious due to the impending recession and deepening global recession, which also created a stir in the IT sector during the last quarter.”
Citing reports, Gulati said that 33 per cent of Indian CEOs have put a halt to hiring. “India may be affected in the short term, but in a country with a GDP growth of 7 per cent, the market is expected to see a balanced outlook with growth in the tech sector and startups,” he added.
“Consolidation of large startups coupled with a measured approach to funding is expected to boost the economy in 2023,” he added. At the same time, we expect a lot to change in the employment scenario during the year.”
As per the survey, the hiring outlook has weakened in all the four sectors as compared to the previous quarter and the same time last year.
Employers in all four sectors expect payrolls to increase through the first quarter of 2023. The north shows a strong recruitment momentum where the net employment outlook stood at 36 per cent, followed by the west at 32 per cent while the outlook for the south and east stood at 29 per cent. percent and 26 percent, respectively.
Digital roles will continue to drive most of the demand. Organizations in the IT industry and finance and real estate report the most optimistic outlook (39 percent), followed by consumer goods and services (37 percent).
“The skill gap remains a major constraint in hiring intent and unless it is addressed through joint efforts of corporates and educational institutions, the growth in employment rate will be in single digits,” Gulati said.
Globally, employers in 38 out of 41 countries and territories forecast a net positive recruitment outlook. However, hiring confidence continues to fall in all countries as concerns grow over a possible recession and stagnant inflation.
Hiring managers in APAC (Asia Pacific) anticipate strong hiring sentiment with a net employment outlook of 25 per cent but slowing hiring intent.
Singapore topped the list with a net employment outlook of 33 per cent, followed by Australia (32 per cent) and India (32 per cent). Japan (8 percent) and Taiwan (11 percent) reported the most cautious employment outlooks.
“There is no denying that the headwinds that economists have been forecasting are beginning to affect labor markets,” said Jonas Prising, Chairman and CEO of ManpowerGroup.
