With 4% growth, December hiring activity similar to last year base, sector wise trends a mixed bag: Naukri JobSpeak Dec’22
Non-IT sectors like Insurance, Banking & Real Estate continue to grow, even as IT, BPO & Retail witness slowdown compared to first half of 2022
India, 11th Jan 2023: The hiring activity in Indian white collar professional segment showed resilience and long-term stability in December despite slowdowns in some key sectors. Naukri JobSpeak, country’s premier job index, emerged at 2890 in Dec’22 up from 2770 during Dec’21. The momentum generated in the beginning of 2022 sustained into the second half of this year, barring a few key sectors. In light of the worrying signs visible in global markets, December hiring activity in India ended up +4% compared to Dec’21. However, a sector wise analysis comparing Dec’22 to first half of 2022 (Jan-Jun period) reveals a mixed trend. In a nutshell, the growth in domestic economy driven sectors & non-metro cities has offset the slowdown seen IT & BPO, resulting in sequential stability at aggregate level. Detailed analyses below.
Domestic economy driven sectors offset dips in IT/BPO sectors linked to global markets
Compared to Dec’21 , stable growth was seen across multiple sectors. But the mix shifted in the second half of 2022, with domestic-economy driven sectors recording stronger growths. Dec’22 numbers when compared to the first half of 2022, showed a robust 51% growth in hiring activity for insurance sector. Other sectors, which recorded an upward trend vs first half of 2022, include Oil (33%), Banking (24%), Real estate (21%), and Auto (12%). However, IT & BPOs – sectors linked to global markets declined by 19% and 9% respectively in Dec’22 vs first half of the year, with start-up hiring impacted the most.
Non-Metro cities continue to outpace larger IT dependent markets
Amongst non-metros, Ahmedabad led the list with 39% growth, followed by Vadodara at 29%, and Jaipur at 16%. Among the top-tier metro cities, Delhi/NCR and Mumbai witnessed 12% growth in hiring activity compared to the monthly average of the first half of the year. Similar trend was observed for Kolkata as well where new jobs created grew by 3%. On the contrary, Chennai, Pune, Hyderabad, and Bengaluru, largely dependent on IT sector, showed a decline of -4%, -7%, -11%, -15% respectively.
Demand for senior professionals continues
The long-term demand for professionals across levels was stable throughout the year. Professionals having 16+ years reported 26% of growth and the 13-16 years of experience segment rose by 15%. However, the largest segment that comprises freshers and mid-experience professionals remained flat.
Commenting on the report, Pawan Goyal, Chief Business Officer, Naukri.com said, “The Indian job market exhibited favorable hiring activity in 2022, with a 20% increase in new job creation compared to the full year base of 2021. However, we do witness a correction in key sectors like IT and BPO towards latter half of the year currently being offset by hiring activity uptick in Non-IT sectors like Insurance, Banking and Real Estate. This reaffirms the multi-sectoral and balanced footprint of the Indian white-collar job market. As we enter 2023, the positive trends observed in non-IT sectors and smaller cities, keep us watchful yet optimistic with respect to 2023.”
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Methodology
The Naukri JobSpeak is a monthly Index representing the state of the Indian job market & hiring activity based on new job listings as well as job-related searches* by recruiters on the resume database on Naukri.com. The JobSpeak Index captures hiring activity across multiple dimensions including industries, cities, functional areas, and experience bands. July 2008 is taken as the base month with an index value of 1,000 and the subsequent monthly index values are compared with the data for July 2008. The index is a highly robust and reliable indicator of white-collar hiring in India. It is aggregated based on the hiring activity of over 100,000 clients with more than 70 Lakh new job mandates every year. The report does not cover gig employment, hyperlocal hiring or campus placement. Over a long period of time, JobSpeak could be impacted by factors like internet penetration and Naukri’s market share.
*Index now includes job-related searches happening on Naukri’s resume database, which helps in generating statistically significant data at a more granular level
About Naukri.com
Naukri.com, India’s No. 1 job site and the flagship brand of Info Edge, introduced the concept of e-recruitment in India. Since its inception in 1997, Naukri.com has seen continuous growth while outperforming its competitors in every sphere. Info Edge was the first internet company to be listed in India. Being the market leader, the brand enjoys highest levels of awareness and market share amongst job seekers and recruiters for more than two decades and has become synonymous with the jobs category. The platform has about 1 Crore active app installs and receives 2-3 Million job applications every day. It provides hiring-related services to corporates, recruiters, placement agencies, and job seekers in India & overseas and offers multiple products like Resume Database Access, listings, Branding, and response management tools. With more than 70 lakh new job mandates every year and over 8.5 Crore jobseekers, the brand serves over 100,000 unique clients through its 63 offices in 44 cities in India.
