Online recruitment activity grows 10% in September: Monster Employment Index

Customer service and logistics register increased online hiring in September, said the Monster India index

18 industries out of the 27 monitored by the index registered a positive year-on-year growth. Photo: iStockphoto
18 industries out of the 27 monitored by the index registered a positive year-on-year growth. Photo: iStockphoto

New Delhi: Online recruitment activities in September registered a year-on-year (y-o-y) growth of 10%, according to the Monster Employment Index (MEI), released by Monster India, a leading online career and recruitment resource.

Top growth industries that witnessed a significant increase in online hiring include the BPO sector (up 49%) along with the logistics industry (up by 32%) and customer service professionals (up 66%) . The education sector (up by 67%) has maintained a lead in the past few months over other monitored industries.

City-wise data released by Monster shows a steep growth for tier II cities with Jaipur (up 30%), followed by Ahmedabad (up 29%), steering ahead of metros such as Delhi and Mumbai, that registered a 26% and 23% growth y-o-y respectively. According to Sanjay Modi, managing director,, APAC & Middle-East: “Tier-II markets continue to outperform the metros; while top metros such as Delhi and Mumbai are yet to enter the top recruiter’s race.”

Among industries, the lowest-growth industries were production and manufacturing (down 18%), while IT too showed a downward trend from 44% in August to 31% in September. These two key industries continue to remain in the slump despite rigorous government campaigns such as Digital India and Make in India.

Commenting on the overall trends, Modi said: “On the back of the expectations from the festive season, MEI for September shows significant hiring growth in the BPO and the logistics sectors as well as in the hiring of customer service professionals. Gearing up to support the demand expected from the festive season upsurge, the e-commerce sector has equipped itself with short-term workforce to strengthen its delivery mechanism as well as handling of customer service queries. Another noteworthy development has been in the travel and tourism sector, where the e-recruitment has declined by 8% (y-o-y) for the first time since December 2013. This drop can be attributed to lack of initiatives to promote Indian tourism in the overseas markets. This is further compounded by the other factors—safety of travellers and the outbreak of diseases such as dengue and chikungunya.”

Here are the overall trends, y-o-y:

Industry trends

18 industries out of the 27 monitored by the index registered a positive year-on-year growth.

— Education (up 67%) continued as the leading sector despite marginal slowdown in the pace of long-term growth rate vis-a-vis August (68%).

—BPO/ITES sector (up 49%) recorded the second-highest growth on-year among all monitored industry sectors as the rate of growth improved three points between August and September. Hiring activity in the sector has picked up in the past few months and the sector registered a 22% growth between June and September.

—Online recruitment activity in IT (hardware and software) has slowed significantly. The sector has registered no growth in e-recruitment activity on a month-on-month basis compared to August. Online opportunities slipped below from six months ago (March) by 1%.

—E-recruitment in travel and tourism has taken a hit as well. The year-on-year growth rate (down 8%) is negative for the first time since December 2013. All other parameters exhibit a similar downtrend; negative 10% on a six-month basis, no growth on a three-month basis and negative 2% month-on-month.

—Production and manufacturing (down 18%) continued to chart the steepest annual decline among all monitored industry sectors.

—The e-commerce sector continued to chart progressive slowdown. The year-on-year growth rate eased eight points from 19% in August to 11% in September. The index reading for the series moved closer to a six-month level, while there is no growth in online activity month-on-month.

Occupation trends

Online demand exceeded the year-ago level in 10 occupation groups out of the 13 monitored by the index.

—Aligning with steep growth in the BPO/ITES sector there is increased demand for customer service professionals. The group registered a 66% growth from the year ago and an 11% growth from the month ago; the steepest recorded among all job roles.

—Online demand for HR and administration slipped below the year-ago level; down 1%. This is the first negative growth since February 2015. The group has been witnessing negative or no growth in monthly demand since April. Demand for the group eased 7% from three months ago (June).

—Purchase/logistics/supply chain registered a notable 32% year-on-year growth this month following low levels since June.

—The steepest decline in demand was witnessed by hospitality and travel (down 10%), followed by arts/creative (down 7%).

Geographic trends

E-recruitment activity increased in 12 of the all 13 cities monitored by the index.

—Jaipur (up 30%), followed by Ahmedabad (up 29%) and Kolkata (up 28%), registered the steepest growth in year-on-year recruitment activity. The pace of growth eased four points in Jaipur between August and September, whereas Ahmedabad and Kolkata registered a 7-point increase each in the annual growth rate.

—The annual growth momentum saw maximum advancement in the Delhi-NCR region; up 11 points from 15% in August to 26% in September. Delhi-NCR is also the only major city to have ranked among the top five in the year-on-year growth chart.

—The annual growth rate in Mumbai (up 23%) paced up by four points following a relatively stable growth trend since June 2016. The year-on-year-growth rate in Bengaluru (up 22%), on the other hand, eased four points.

—Leaving aside Baroda, all cities monitored by the index registered a positive year-on-year growth trend. E-recruitment in Baroda matched the year-ago level in September, following negative growth in July and August.