Employment Outlook: Hiring Sentiment for April-June Q1 FY24

Hiring intent by job level: The intent to hire at mid- and senior-level positions increased in Q1 (Apr-Jun) FY 2023-24 for both services (4% increase) and manufacturing (5% increase). Employers are strategically focused on rebuilding their teams and moving towards lateral hiring. Entry-level positions are seeing a possible slowdown in hiring, bringing down the intent to hire for entry-level positions in both services and manufacturing by 6% apiece.

Hiring intent by business maturity: Large-sized organisations in both the services (86%) and manufacturing sectors (73%) have weathered the recessionary sentiment well and have higher levels of intent to hire compared to the previous quarter. But the hiring sentiment in the medium-sized businesses and small enterprises sees a decline in this quarter (approximately 4% & 8%).

Attrition continues to hurt businesses

Attrition continues to loom over businesses. Employers are attempting to strike a balance between attracting potential employees and retaining them for longer through their compensation plans.

In the manufacturing sector, the healthcare & pharmaceuticals industry continues to witness double-digit attrition at 14.11%. However, it is over 1% less than the previous quarter. The Electric Vehicle & Infrastructure industry repeatedly outshined, displaying the lowest attrition rate of 2.09%.

The services sector is also one of the sectors that have been hit hardest during economic instability. This time also, it’s not different either. Information Technology, yet again, witnesses a high attrition rate of 29.17%, while Travel & Hospitality witnesses the lowest attrition of 2.57%.

Conclusion

The TeamLease quarterly ‘Employment Outlook Report Q1 FY24’ is a forward-looking tool for human resource professionals and policy and decision makers, reflecting hiring sentiment across 14 cities, 9 manufacturing industries, and 14 service industries in India for non-white-collar jobs. This report carries “Intent to Hire” statistics for Q1, 2023-24 [Apr, 2023 – Jun, 2023], on the basis of the survey and analysis carried out during January and February, 2023.