Job Market in India in 2024
In 2023, global uncertainties like trade tensions and rising interest rates persisted, but major economic accidents were avoided, exceeding expectations. On the National front, the job market in India saw “quiet quits”, “layoffs” and “bare minimum Mondays” trending. As we move into 2024, the evolving landscape suggests on-going tension between employee well-being and productivity expectations.
The shift toward remote work, contract jobs, and gig jobs is reshaping the business landscape for 2024. India’s economic trajectory is witnessing remarkable growth, poised to make a substantial impact on the global market by 2030. On a positive note, the upswing in the services sector is expected to aid India reach its revised 7% economic growth target for FY24, up from the initial 6.5% estimate by the Reserve Bank of India.
Job creation depends on various factors
It’s important to note that the overall impact on job creation depends on various factors, including the pace of technology adoption, government policies, and the ability of the workforce to adapt to evolving industry needs. While some sectors may see significant job growth, others may undergo shifts or restructuring, impacting employment differently across industries. Overall, the dynamic and evolving nature of the job market will be influenced by how these trends unfold and integrate into the broader economy.
Here are various factors that influence job creation:
- Economic growth
- Demographic dividend
- Skill development
- Urbanisation
- Outsourcing and globalisation
In the mixed state of equilibrium of growth and inflation in India, external sector developments, persistent supply-side disruptions, and geopolitical risks could impact job growth in 2024.
The job market in India faces several challenges, including high unemployment rates, particularly among the youth, skill gap, and lack of quality jobs. Additionally, there is a need for better infrastructure and improved labour laws to support job creation.
Tech behemoths putting a stop to hiring?
Silicon Valley’s responses to economic downturns have impacted India’s tech industry, with major companies halting hiring activities due to the global economic slump. Job listings for Indian tech giants have dropped by 90% compared to 2022, reflecting challenges in profit growth, reorganisation, and project development. Key sectors like IT and FMCG, historically driving India’s growth, are weakening, with red flags raised due to project delays, infrastructure slowdown, rural demand weakening, and stagnant agricultural output. The economic and financial outlook for 2024 may diverge significantly from current projections, raising concerns about potential surprises for the country.
Kartik Narayan, CEO – Staffing, TeamLease Services Ltd, asserts, “The likelihood of layoffs in India in 2024 is unlikely except for specific sectors being affected. Over 35,000 people have lost their jobs at Indian startups in the last two years. Job cuts are expected to continue in the startup space into 2024 in the pursuit of profitability”.
Women’s participation in the workforce may be impacted
Female job seekers face heightened scrutiny, impacting women’s participation in the workforce amid a competitive job market. This poses a setback to broader initiatives aimed at enhancing women’s workforce participation.
The talent acquisition industry is also undergoing rapid change in 2024, with organisations needing to keep up with trends in candidate expectations, workforce dynamics, and technology to remain competitive in recruitment efforts. As businesses adapt to the evolving landscape, talent acquisition becomes crucial in securing skilled individuals, especially in the dynamic job market in India.
India’s growth outlook
Despite external challenges, India’s resilient growth is projected at 6.2% in 2024 by the United Nations. All sectors are set for growth, backed by a strong financial sector and accommodating monetary policies. Overall, 2024 is expected to balance inflation and economic expansion, fostering improved growth sentiments. The commitment to hiring, workforce expansion, and rehiring is driven by economic expansion, regulatory shifts, and technological progress, offering diverse opportunities for job seekers across industries.
“It is possible that we will be the third largest economy by 2027-28, and our GDP will cross USD 5 trillion by that time. By 2047, it is a conservative estimate that we will reach at least USD 30 trillion in terms of economy,” FM Sitharaman said at the Vibrant Gujarat summit.
The job market in India in 2024 is a complex landscape influenced by global and national economic factors. While challenges persist, there are opportunities for growth, innovation, and talent acquisition. Organisations need to adapt to the evolving dynamics, leveraging technological progress and regulatory shifts to contribute to India’s economic expansion and job market momentum.
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