Hiring Activities In India Experience 7% Decline In May: Report

According to a report, hiring activities in India witnessed a 7 per cent slowdown in May compared to the same period last year.

The report released by Foundit found that there was a decline in hiring across all industries, with a 4 per cent month-over-month (MoM) decrease. The report pointed out that economic constraints have compelled companies to reduce expenses, resulting in the overall decline in hiring activity. Additionally, the report highlighted the significant skills gap in the country, which has further complicated the hiring process for employers, making it challenging to locate qualified candidates.

The ongoing technological disruption has also played a role in impacting hiring activity. As industries undergo transformation, job changes have become more prevalent, adding another layer of complexity to the hiring landscape.

Despite the general decline, positive trends were observed in Tier 2 cities such as Ahmedabad and Jaipur. Ahmedabad experienced an 8 per cent increase in hiring, while Jaipur demonstrated marginal year-over-year (YoY) growth of 1 per cent. This suggests pockets of growth and opportunities for job seekers in these regions.

However, some major cities faced significant declines in hiring. Bangalore, known as the IT hub, witnessed a substantial 24 per cent dip, possibly due to the rapid automation replacing jobs in various industries, particularly the IT sector. Other cities such as Delhi/NCR, Mumbai, Pune, and Hyderabad also experienced notable YoY declines ranging from 9 per cent to 16 per cent, underscoring the challenges faced in the job market in these areas.