Bangalore: Senior executives are confident that business will improve in the three months to June and will hire more workers, says a survey by TeamLease Services Pvt. Ltd, one of India’s largest staffing firms.
The so-called net employment outlook—or the difference between the numbers of managers who expect hiring to increase and those who expect it to reduce—has climbed 34 percentage points from the year-ago period and 11 points from the previous quarter, says the Employment Outlook Survey, released on Tuesday.
The net business outlook—or the difference between the numbers of managers who see their business improving and those who expect it to shrink—has gone up by 58 percentage points from the year-ago period and 15 points from the previous quarter.
The quarterly survey polled human resource heads, chief executives and senior managers of 513 firms in India.
Graphic: Ahmed Raza Khan/Mint
The net employment outlook’s rise from 47% to 58% is the sharpest quarterly climb since July-September 2009. The figure had then jumped by 22 percentage points as India began showing signs of revival from the slump. The outlook had touched 46% then, and has remained more or less flat since then.
“The improvement in sentiment has been studied and gradual over the past four quarters—giving us sufficient reason to believe that it is here to stay,” said A.R. Rajesh, vice-president at TeamLease. “Industry seems to have turned the corner and intends to hire aggressively.”
The net business outlook jumped from 41% to 56% for April-June 2010, once again the steepest turn it has taken since July-September 2009.
Rajesh said hiring sentiment has improved across sectors and in all cities.
Sudhakar Balakrishnan, managing director at the Indian arm of Swiss staffing firm Adecco SA, also said the last six months have seen an improvement in business sentiment. “Customers are buoyant. Hiring plans get made in March-April and they look very positive.”