After a challenging year amidst a lot of hullaballoo in the midst of global headwinds and the cash-crunch back home, the domestic job market is heading towards another gloomy year come 2017, experts opine. They say that employers are already in a ‘wait and watch’ mode which is indicative of a weak trend in pay hike.
As per the month-on-month analysis, hiring across industries witnessed a slow growth this year as compared to 2015 and actual salary increase was lower than the predicted figures of 20 percent on the higher side and a little above 10 percent on an average.
The current government’s demonetisation moves and Donald Trump being elected as the President of the United States, are the two major factors that are likely to impact the job scenario in the coming year. Certain sectors are likely to be affected owing to the aspects as mentioned above.
According to Joseph Devasia, Managing Director of global executive recruitment firm Antal International India, sectors like retail, e-commerce and FMCG did well initially. However, there has been slack in the overall hiring activity in these areas after demonetisation including, reduced pay hike for employees.
Experts are of the opinion that the hiring outlook for India has received a significant blow post-demonetisation and segments like infrastructure, real estate, construction and high-end automobiles will be impacted in the long run.
Nevertheless, experts believe that right now demonetisation may seem like a dampener of sorts, but in the long term, it will eventually benefit the country and its youth by creating more formal jobs like never before.
In the words of Rituparna Chakraborty, EVP and Co-Founder, Team Lease Services, “A bold move which is pro formal jobs. Such moves also build the confidence of external investors to set up shop and contribute to the economy”.
On the other hand, sectors like fin-tech, digital payments and banks would be positively impacted by this move and would exponentially multiply their hiring projects.
Sambhav Rakyan, Data Services Practice Leader, Asia Pacific at Willis Towers Watson said that coming 2017, Indian employees could see even a single-digit hike in their salary for the first time since 2011.
Therefore, on the last note, it can be said that, overall, in the new year, the pay hike for professionals would be somewhat limited and also for job seekers it might not be the best year to consider switching jobs. It is better not to expect much from employers this year.
Source: Economic Times