The demand for freshers has gone up 5% over the past six months, aided by gradual improvement in the IT sector, according to a report released on Thursday. The highest share of job postings for freshers was witnessed by the IT and staffing industry with over 32% and 12% share of jobs, respectively, dedicated to entry-level professionals, Foundit (formerly Monster APAC & ME) report on fresher hiring trends noted.
According to the latest findings of the company’s insights tracker, the overall hiring index increased from 265 in May 2023 to 295 in May 2024. In comparison to the previous year, there has been an 11% increase in hiring, which is indicative of a recovery in employment opportunities.
Industry-wise hiring activity
In terms of industries, one sector that has shown a remarkable growth of 47% in year-on-year (YoY) hiring is production and manufacturing. This upswing is driven by various factors, including increase in large modern manufacturing in India significantly supported and enhanced by government push in PLI, infrastructure development and policy intervention on imports/exports.
The rise in demand is also evident in related industries such as home appliances and electrical components, which recorded a 35% increase in hiring, says the report.
The telecom/ISP sector recorded a hiring growth of 9%. Higher investments in telecommunication services and the relaxation of FDI norms are majorly responsible for this noteworthy improvement. Plus, as India’s telecom landscape is expanding, driven by rising demand for end-user applications and advancements in markets such as IoT, cloud computing, data centers and the upcoming 5G technology, the future of this sector looks quite promising in terms of opportunities.
According to the report, the healthcare industry has displayed signs of revival, witnessing a 29% YoY increase and a 4% monthly increase in hiring.
A downtrend was seen in sectors such as agro-based industries (-16%), shipping/marine (-30%), FMCG (-9%), and import/export (-16%). Retail (18%), oil/gas/petroleum (22%), real estate (20%), and IT (20%) industries responded moderately in terms of annual growth.
Tier-2 cities versus metros
Coming to the hiring activity in cities, the report highlights that the tier-2 cities have outperformed metros. Infrastructure development initiatives and enhanced connectivity and transportation have pushed corporate firms to willingly expand their business to cities such as Kochi, Coimbatore and Jaipur.
Owing to these improvements, the availability of superior logistics, market accessibility, and an improved quality of life for employees are the factors that make tier-2 cities a key hiring location for recruiters. Nonetheless, in terms of metro cities, Kolkata and Delhi/NCR continue to remain leading hiring hubs on a year-on-year basis.
According to the findings of the extensive report, sectors like production and manufacturing (29%), IT-software & services (17%), real estate (8%), and education (8%), where recruiters are seeking diverse talent with specialised skill sets, are witnessing a stronger growth graph in tier-2 cities.
Metro cities are registering demand for individuals in IT-software & services and advertising due to a surge in the demand for IT service providers and digitalisation, indicating a recovery from previous multiple episodes of layoffs and reduced bench strength.
Sekhar Garisa, CEO, foundit, a Quess company, says, “It is remarkable to note the flourishing performance of tier-2 cities in terms of hiring, outpacing their metropolitan counterparts. These cities have showcased consistent upward trends, particularly driven by the production and manufacturing sector. This can be attributed to several factors, including infrastructural development, favorable government policies, and a burgeoning talent pool eager to contribute to India’s industrial landscape.”
As far as the pay structure is concerned, the minimum salary in a metro city ranges from Rs 4.83 lakh per annum (LPA) to Rs 6.63 LPA; at the higher end, it ranges from Rs 8.09 LPA to Rs 15.98 LPA. Tier-2 cities do not disappoint in terms of pay as the minimum salary ranges from Rs 4.01 LPA to Rs 5.43 LPA and the maximum salary ranges from Rs 7.12 LPA to Rs 11.01 LPA, as per the report.
