India Incs’ Optimism to Hire Labor Highest in 11 Years, Survey Reveals

NEW DELHI: As India’s economy recovers from the third wave of the Covid-19 pandemic, hiring optimism at India Inc is at its highest level in 11 years, according to analyst firm Dun & Bradstreet data.
The Dun & Bradstreet Composite Business Optimism Index, a quarterly survey-based index that is designed to measure the pulse of the Indian business community across India, in the second quarter of 2022, rose 7.4% from compared to the first quarter of 2022. Six of the six optimism indexes recorded an increase.
“In the current context of heightened geopolitical uncertainty, Indian business optimism in the second quarter of 2022 reached its highest level in 11 years, as indicated by our index. The recovery in business activity accelerated after the third known wave of COVID in India, with mobility surpassing pre-COVID levels,” said Dr Arun Singh, Global Chief Economist, Dun & Bradstreet.
GST collections and export growth were at an all-time high in March 2022 when the survey was conducted. Demand also remained resilient and E-way bills hit a 48-month high.
“Contrary to expectations that company-level profitability would be negatively affected by geopolitical risk, our survey reveals that companies are confident they will post strong earnings. Optimism around net profit was at the highest level in five quarters to hire at an accelerated pace as their optimism about hiring workers is also at an 11-year high, reflecting the buoyancy of the economy,” Singh said.
He warned, however, that the risk remains high. Selling price optimism is the highest since Q2 2012, indicating that retail prices will accelerate further. Protracted geopolitical tensions and sanctions against Russia, in addition to already existing supply chain disruptions, are likely to dampen the recovery of global growth and could temper future levels of business optimism.
Strong points
• The Dun & Bradstreet Composite Business Optimism Index stands at 96.6 for Q2 2022. On an annual basis, it increased by 57% and is the highest since Q3 2011.
• Selling price optimism stands at 52%, its highest level since Q2 2012
• Optimism for net profits stands at 65%, its highest level in five quarters
• Sales volume optimism stands at 76%, up three percentage points from Q1 2022
• Optimism for new orders stands at 72%, up three percentage points from Q1 2022
• Optimism about the size of the workforce is the highest in 11 years
• The basic goods sector is the most optimistic about net profit and the increase in the size of the workforce
Meanwhile, data from the “Fiscal Year 2022 Jobs and Salary Report by TeamLease” shows that, unlike the past two years, in 2022 most positions across all sectors were considered for a raise of salary. Increases should be moderate. Top payers for 2022 are e-commerce and technology startups, healthcare and related industries, information technology and knowledge services. These are the only three sectors that recorded wage growth above 10 per cent.
Monster Jobs Index data shows India saw overall growth of 15% year-on-year and 4% month-on-month in hiring demand due to the increase in positive business sentiment.
BFSI continues to remain the sector with the fastest job recovery with an annual growth rate of 54%, followed by retail which grew by 47% annually, then the production and manufacturing industry. 35% manufacturing.
As BFSI continued to see a boom in employment opportunities, the reopening of physical stores led to a surge in the retail job market. The easing of Covid-19 restrictions has led consumers to frequent leisure centers such as shopping malls, creating demand for talent in the retail and tourism sectors (up 15%) as well. That aside, the upcoming 5G rollout also appears to have boosted demand in the telecom/ISP sectors (up 33%). In fact, real estate, which has shown a continued year-over-year decline in hiring demand since April 19, has seen a dramatic 26% recovery on improving consumer sentiment who are now excited about a rising market.
Mumbai (up 29%) again recorded the largest increase in employment, followed by Coimbatore (up 25%), Chennai (up 21%), Bangalore and Hyderabad (up 20 % each). Rest all metropolitan cities Delhi-NCR, Kolkata and Pune continued to reflect a positive year-on-year growth trend in the range of 6-18%.
While production and manufacturing and industry BFSI saw a significant jump for another consecutive month in all metros, jobs rebounded for almost all functions in Tier 1 cities.
As a result of the reverse migration of workers to Tier 2 markets and the new trend from labor to talent, employment opportunities have also been created in emerging cities and towns. Baroda (up 15%) showed a significant increase in hiring demand, followed by Kochi and Kolkata (up 8%) and Jaipur (up 3%).
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