The hiring in India grew 12 per cent year-on-year in January-May this year, led by professional services, manufacturing, BFSI, e-commerce and IT/ITES sectors, a report said on Tuesday.
"The current global instability has had a significant impact on industries worldwide. Over the past few months, we have seen companies tightening their belts, but India's hiring prospects have improved from the past year," Allsec Technologies (a Quess Company) CEO Naozer Dalal said, quoting the report.
Quess Corp, business services provider, on Tuesday released employment trends insights in a report, based on payroll distribution data collated by its subsidiary Allsec Technologies.
Dalal stated that several global bodies have affirmed that India will maintain its position as the fastest-growing economy in the world.
"The increase in headcount growth (12 per cent) from January-May 2023, compared to the same period last year proves that Indian businesses are holding steady and looking to tide the global economic storm. We anticipate that India's continued investment in crucial sectors like energy and infrastructure will catalyse employment growth in the years ahead," he added.
The data revealed that compared to last year, the professional services industry has doubled its headcount, registering the highest growth.
This directly corresponds to companies increasingly seeking external expertise to expedite business operations while looking to tide over global turbulence, the report noted.
This is especially predominant in areas such as taxation, business consulting, risk advisory, deal advisory, technology services, and environmental, social and corporate governance (ESG) services, it said.
The manufacturing sector also exhibited nearly a 50 per cent increase in headcount, with companies experiencing a strong uptick in sales for Indian products, both locally as well as internationally, it said.
This in turn paved the way for an increase in production and employment, it added.
The BFSI and e-commerce sectors witnessed robust growth too at 16 per cent each, the report stated.
The BFSI sector in India has remained steady due to Indian banks holding their ground amidst challenges faced by banks worldwide due to factors, such as strong domestic demand, enhanced credit conditions for borrowers, and strengthened solvency and funding, it noted.
The e-commerce sector is also doing well due to the widespread adoption of smartphones, increasing internet penetration, growing access to digital payment systems and the government's push towards digital transactions.
The government's efforts to create a more business-friendly environment and promote foreign investment in the country have also contributed to the sector's growth.
The growth in the IT/ITes sector is muted compared to the previous year (just coming out of Covid) and reflects the industry's sentiment of treading carefully amidst an uncertain economic scenario and global challenges like inflation, recessionary concerns and geopolitical events impacting the global markets, the report added.