Domestic structural changes because of demonetisation and GST, coupled
with an uncertain global scenario due to H-1B visa issues, has turned
the job market tepid.Getting employment this year appears tougher than
in previous years as industrial growth is yet to gain traction. The pace
of ob growth this year could be flat or a moderate 5-7% -lower than
2016's 12-15%.
While retail, hospitality and fintech show a small
increase in hiring, a major reason for the reduction in job growth
forecast is the IT layoffs and slowdown in that sector. Data from
Kelly's Services shows a 15% increase in hospitality , 8%
increase in retail and an18% reduction in IT jobs in 2017. “Going by
early trends, increased hiring in other sectors, including retail,
hospitality and fintech result in 5% growth on an average, which is
lower than 7-8% that we saw in 2016,“ said Thammaiah BN., MD, Kelly
Services. While PeopleStrong's hiring intent report indicates 710%
growth in jobs this year, it showed 25% and a 12-15% growth rates in
hiring in 2015 and 2016 respectively . The re
port also says that the growth rate would be lower than last year in the
BFSI, internet businesses, IT services and hospitality sectors.
Global uncertainty , H-1B visa issues and internal policy changes such
as demonetisation and the GST are contributing to a slowdown in
hiring.“Now the positive sentiment that stemmed from introduction of
various initiatives such as `Digital India' and `Make in India' have
normalised and hiring has slowed down from last year. As of July , we
see close to 7% growth in jobs in the hospitality and fintech sectors,“
said Shailesh Singh, business head (RPO services), People Strong.
Aditya Mishra, CEO, Ciel HR services, said, “The little increase in
hiring is seen in
the BFSI sector, with sales and operational roles on the rise.Some
senior positions are being filled in the core engineering sector.“ He
sees a 1% fall in overall hiring.
With respect to salaries,
companies in retail, fintech and hospitality have been dishing out
similar remuneration or a 3-4% increase over 2016, similar to the raise
in the previous year. “However, IT salaries do not follow this trend.
Considering an employee who leaves a position, a replacement resource in
traditional roles in application development, testing and maintenance,
would see decrease in salary by 2-3% in 2017. For new technologies like
Big Data, Hadoop and Cloud, salaries have increased by 1.21.5 times,“
added Thammaiah.
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