2016: Year in Review; Ups and Downs of the Indian Recruitment Industry
2016 has been a whirlwind of a year for the Indian recruitment industry. While some recruiters found sourcing the right kind of talent to be a huge challenge, some sectors opened up a plethora of opportunities for job seekers. Let’s take a look.
Even when the government has taken several initiatives like Make in India to focus on domestic manufacturing and promote employment opportunities, it was the services sector that showed higher job growth in FY’16. According to a research report published by Credit Analysis and Research (CARE), industries including logistics, finance and IT enabled services (BPO/ITES) reported double-digit year-on-year growth in employment. On the contrary, infrastructure and capital goods companies, which are facing a slowdown, said a drop in the workforce.
A sample of 2,112 companies reported 1.6% growth in the labour force at 5.7 million in the fiscal ended March 2016 from the previous fiscal. The report quoted that, while there was no substantial increase in employment across sectors, the service-oriented industry witnessed a good jump in the process of job creation.
On the contrary, other segments like passenger cars and two-wheelers showed a modest increase of 0.5% and 0.3% of the workforce at the aggregate level. The textiles sector, which is one of the largest employers in the country, added just 0.2% more staff in FY16.
On the other hand, recruiters and employers also had had their fair share of challenges to deal with in 2016. Among them, the most significant were talent acquisition. More than 30 percent of employers quoted that hiring the right talent was their biggest challenge as compared to the previous year. It was followed by other problems such as screening talent, dealing with skill gaps and also an increase in candidate dropouts.
Views on the overall hiring scene were somewhat differing as 60 percent opined that hiring went up, 10 percent said it was down, and 30 percent suggested that hiring was somewhat stable in 2016.
While now the recruitment industry anxiously awaits 2017 to dawn and probably witness some exciting activities taking place, till then all can be said is, it is best to wait and watch what the next year has in store for both—employers as well as jobseekers.
Source: Economic Times