White collar recruitment stabilises; other sectors show increase in hiring too: Report

Demand for top management witnessed an increase of 18% despite the fear of a global recession

August 12, 2022

Sectors such as telecom, hospitality, travel, and retail registered a strong recovery in hiring as per Monster Employment Index (MEI)

The telecom sector’s growth has been noteworthy due to the rising digitisation and the anticipated rollout of 5G services

A total of 8 cities out of 13 monitored by the Index witnessed a positive year-on-year growth in July

Hirings in the IT sector shrunk by 6% as laying off employees due to excessive appointments from the past year continued

White collar hiring across almost all sectors is showing signs of stability after two years of hiring fluctuations, with sectors such as telecom, hospitality, travel, and retail registering a strong recovery in hiring as per MEI.

Despite fears of global recession, inflation and macroeconomic headwinds, digitisation and changing consumer sentiments are driving hiring, especially in sectors such as banking, financial services, and insurance (BFSI), chemicals/plastic/rubber, paints, fertilizer/pesticides, and office equipment/automation. The telecom sector’s growth, in particular, has been noteworthy due to the rising digitisation and the anticipated rollout of 5G services.

Tier 2 Cities on the rise

A total of 8 cities out of 13 monitored by the Index witnessed a positive year-on-year growth in July with Mumbai registering the highest growth of 20%, followed by Hyderabad at 8% and Delhi-NCR with 6%. With the advent of the festive season, the retail sector is witnessing an increased job demand across segments, especially in Tier 2 cities such as Coimbatore and Ahmedabad. A growing number of firms are also setting up bases in smaller towns to tap local talent. In fact, Pune saw a 66% increase in jobs in the BFSI industry, which consolidated the city’s position as a fintech hub.

Across experience levels, the demand for top management witnessed an increase of 18%, despite the fear of a global recession. From a sectoral perspective, the chemicals/plastic/rubber, paints, fertilizer/pesticides industry grew by 32% due to rising investments in the country’s speciality chemical sector and China Plus One strategy, which aims at diversifying investments in other countries apart from China.

Driven by digitisation, payment innovations and increased penetration of financial services, the BFSI industry grew by 25%. The anticipated rollout of 5G is expected to give a fillip to telecom companies that are looking to beef up their workforce with hiring anticipated to grow by 15% year on year.

Sectoral growth

There was a 14% growth in the production and manufacturing sector and the retail sector grew by 10% buoyed by festive hiring. BPO/ITES and real estate sectors grew by 10% each and travel and tourism witnessed an incline of 8% compared to last year, according to the MEI..

However, hirings in the IT sector shrunk by 6% as laying off employees due to excessive appointments from the past year continued. The media & entertainment industry also slowed down by 25% due to changing consumer habits and reduced marketing and advertising spending. Similarly sectors such as engineering, cement, construction, iron/steel, and shipping/marine have witnessed a significant decline in demand for professionals.