Indian Job Market Poised for Growth Amid Economic Optimism – 56% of Employers to Expand Workforce

The Indian job market is set for a significant growth spurt, with an expected increase of over 6 % in the first half of the current fiscal year, buoyed by positive economic conditions across 23 industries, according to TeamLease Services. Their Employment Outlook Report for H1 FY25 (April 2024 to September 2024), which surveyed 1,417 employers across 20 cities, found that 56 % of respondents anticipated workforce expansion in the upcoming months. Additionally, 23 % of employers expected to maintain their current staffing levels, while 21 % foresaw a reduction in their workforce.

The favorable employment outlook is underpinned by strong economic indicators, including a nearly 7 % GDP growth forecast for India in 2024 by major global rating agencies, positioning India as the fastest-growing G-20 nation. Other contributing factors include robust investment demand, a peak in headline inflation, and a heightened focus on technology and skills by employers, which collectively support a resilient job market despite global geopolitical challenges.

TeamLease Staffing CEO Kartik Narayan emphasized the resilience of the job market, attributing it to India’s projected economic growth, strong investment demand, and easing inflation. He highlighted that nearly 40 % of organizations are prioritizing skills development to prepare their workforce for forthcoming technological advancements. Narayan noted that the report highlights a dynamic and optimistic hiring landscape.

The survey revealed that the healthcare, pharma, automotive, manufacturing, engineering, and infrastructure sectors are the most likely to see workforce increases. In terms of workforce size growth, the leading sectors include construction and real estate, travel and hospitality, electric vehicles (EV), and EV infrastructure.

A city-wise analysis showed that Delhi, Bengaluru, and Hyderabad are leading in employment opportunities. Emerging job markets such as Coimbatore, Visakhapatnam, and Jaipur are also experiencing substantial growth. Employers are actively seeking candidates with strong communication skills, attention to detail, technical proficiency, and organizational abilities for both existing and new roles.

Furthermore, generative AI is expected to significantly influence 35 % of talent acquisition strategies, indicating a shift in hiring practices due to technological advancements.

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