New Delhi: Corporate India is likely to witness 10-15% increase in hiring in fiscal year 2010-11, led by the telecom sector which is forecast to provide a whopping over one lakh jobs, global consultancy Ernst & Young (E&Y) has said.
“Indian job market seems to be striking right chord with country’s working population, as more and more vacancies are being created and filled across sectors. On a conservative stand, percentage increase in hiring in the new fiscal can be between 10-15%,” Ernst & Young partner and national head (People & Organisation) NS Rajan told PTI.
“The telecom growth story would continue in the fiscal and hiring activity in this sector is likely to be in excess of 1,00,000 jobs,” Rajan said.
Other sectors that are likely to lead hiring in the new fiscal include pharmaceuticals, FMCG and education, as they are facing a talent crunch at present.
Ernst & Young, however, believes that despite the ensuing euphoria over rising number of jobs, companies are likely to approach hiring with caution due to the hard lesson learnt in the past.
Although most companies are doing away with hiring freeze imposed during the economic downturn, they are likely to hire strategically and look for long-term talent needs and not near term staffing requirements.
Moreover, Ernst & Young believes that while hiring would continue mostly to meet the replacement demand created as a result of erstwhile hiring freeze, there are likely to be mixed trends in the level of hiring activity across sectors.
“Though hiring has picked up in the economy across sectors like pharmaceutical, chemical, auto, insurance, education, retail and IT, it is unlikely that the bullish hiring trends of 2007 will be restored within the next one year,” Rajan said.
In sectors like auto/auto-components, banking, financial services and insurance (BFSI), and real estate, the hiring is on the rise to primarily fill in vacancies resulting from significant downsizing in the past and to meet future expansion plans.
Interestingly, most companies are expecting higher attrition levels over the next few months on account of jobs coming back into economy resulting in increments being used as a tool to retain talent.