ITES, Construction and IT sectors saw sharp declines in recruitment activity in July compared to June as employers seemed to take a ‘wait and watch’ approach, India’s biggest jobs portal Naukri.com said.
The biggest slump was seen in BPO (ITES) sector, where hiring dropped 24% in July compared to June. In IT, it was down 11%.
In the construction sector, whose overall impact is lower than that of the IT and BPO sectors, hiring was down 14%.
Telecom sector was one of the rare segments that showed a growth in hiring, up 8%. Others like Banking, Auto and Pharma remained flat compared to June, though higher on a year on year basis.
Not surprisingly, the overall hiring index was down 6% in July, after growing steadily for the first six months of the year.
Thanks to the growth during the first half of the year, the job creation in 2011 continues to be higher than that of 2010, as measured by hiring activity.
Even in July, despite the month-on-month dip, hiring was up 10% when compared to July 2010, Naukri said.
“Concerns of a global economic crunch and rising inflationary pressures are acting as a caution sign for India Inc. Therefore recruiters of some sectors are on a wait and watch mode. This does not mean that companies have frozen hiring, but they are certainly not going overboard.
“While there is some caution in the near term, medium term indicators for hiring remain positive which was even reflected in the hiring outlook survey where 78% recruiters said that new jobs will be created in the second half of 2011” Hitesh Oberoi, Managing Director and CEO of Naukri’s parent firm, Info Edge, said.
In terms of cities, Delhi, Mumbai and Kolkata were steady while Bangalore, Chennai and Hyderabad saw declines in the range of 9% and 19% due to the poor show by IT and BPO.