Hiring to grow 8.3 pc in 2024

Chennai: With December 2023 witnessing an uptick, hiring is expected to expand by 8.3 per cent in 2024. While sectors like manufacturing, BFSI, automotive, retail, and travel and tourism will experience increased hiring, IT sector may witness 12-15 per cent growth.

According to the data from foundit, hiring activity in 2023 was 5 per cent lower than 2022, indicating a slowdown in the job market. However, the index also showed a 2 per cent increase in the last month of 2023, suggesting a possible turnaround in the hiring scenario. The economy experienced a shift towards the end of 2023, breaking the previous trend that had been consistent since mid-2022.

Increased demand for talent with expertise in emerging technologies is anticipated in 2024. While initial delays in IT hiring are possible, demand for AI/ML, Data Science, and cybersecurity experts is expected to soar. According to NLB Services, overall hiring in the IT sector is expected to surge by 12-15 per cent in 2024, especially due to the surge in Global Capability Centres and global economy settling down comparatively. From a quarter perspective the initial quarter will notice an average 8-10 per cent growth in hiring, followed by Q2 and Q4 demand percentage rising up to 12-14 per cent.

Industries focusing on sustainability will prioritise roles related to green initiatives and eco-friendly practices. Consulting firms will seek professionals with diverse skill sets for strategic guidance in an evolving business landscape, said foundit.

In 2023, certain sectors showcased remarkable resilience and growth. Retail and travel and tourism sectors, both witnessed a 25 per cent uptick, reaping the benefits of the resurgence in consumer spending. The Advertising, Market Research, and Public Relations (PR) sector saw an 18 per cent increase, attributed to the rise of digital marketing and e-commerce.

IT hardware and software experienced an 18 per cent decline, reflecting challenges from saturated markets, skill gaps, and global competition. Healthcare, pharmaceuticals, biotechnology and life sciences sector declined 12 per cent and the Banking/Financial Services, Insurance sector was down 9 per cent. Manufacturing faced disruptions with an 8 per cent decline, attributed to supply chain issues and rising input costs. BPO/ITES, engineering, cement, construction, iron/steel, and education also faced challenges with a hiring dip ranging from 8 per cent to 4 per cent. FMCG/food and packaged food saw a 3 per cent decline, feeling the impact of inflation and evolving consumer habits.

"Stepping into 2024 marks a shift from resilience to an era of remarkable growth in certain sectors. It is not merely about scaling up teams but fundamentally reimagining how we approach recruitment,” said Sekhar Garisa, CEO of foundit.