New Delhi:The Manpower Employment Outlook Survey for the second quarter of 2008 released today revealed that the job market in India is expected to remain vibrant.
Of the 32 countries and territories surveyed globally this quarter, hiring intentions among Indian employers continue to be among the most optimistic in the world with an overall Net Employment Outlook of +36%.
This Outlook represents a moderate decrease of 6 percentage points since the first quarter of 2008, but an year-over-year increase of 5 percentage points. Of the 5,279 employers surveyed, 37% expect an increase in staffing levels in Q2 of 2008, 1% anticipate a decrease, and 54% are expecting no change.
The Net Employment Outlook is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location over the next quarter.
Employers in all eight countries and territories surveyed across the Asia Pacific region anticipate positive hiring activity for Q2 of 2008.
Commenting on the survey findings, Naresh Malhan, managing director, Manpower India said, “Indian employers continue to be positive yet increasingly cautious about their hiring intentions. The softening of the hiring pace for Q2 can be attributed to uncertainty in some of the leading economies across the world resulting in volatility in equity markets, commodity prices and exchange rates.
In view of this, employers in India are placing more focus on increasing efficiency and productivity of employees in order to remain competitive in the market rather than on increasing staff strength.
The Survey, conducted for the twelfth consecutive quarter in India, reports that employers across all seven industry sectors in India are positive about their hiring intentions.
Employers in the Mining & Construction industry sector report the most optimistic Outlook among all the seven industry sectors [+42%]. Employers in the Public Administration & Education and the Wholesale & Retail Trade sectors report the least robust Outlooks [both +31%].
Hiring intentions of employers in all seven industry sectors reveal quarter-over-quarter decreases in Net Employment Outlook, with the steepest decline in the Wholesale & Retail Trade industry sector [down 10 percentage points].
Malhan added, “Despite the downward shift in employer sentiment across six other industry sectors, the optimism of employers in the Mining and Construction sector remains buoyant. Employers in this sector predict the strongest hiring plans among all industry sectors surveyed because of ongoing public and private investments in the infrastructure sector. The spiraling growth in the construction sector is set to take India’s infrastructure standard to new heights.”
The Survey looked at employers across seven industry sectors: Finance/Insurance & Real Estate; Manufacturing; Mining & Construction; Public Administration & Education; Services; Transportation & Utilities; Wholesale & Retail Trade.
Employers in all four regions in India anticipate varied hiring intentions across industry sectors. Employers in the South expect the most robust hiring pace [+39%] among all four regions in Q 2, although the Outlook does indicate a slight decline of 2 percentage points over the previous quarter.
Employers in the North anticipate brisk hiring activity with a Net Employment Outlook of +36%, where the Outlook has decreased by 5 percentage points over the previous quarter.
Meanwhile, employers in the West report a Net Employment Outlook of +35%, a decrease of 8 percentage points compared to three months ago. Employment prospects are weakest in the East, where the Net Employment Outlook is +26%; among all regions surveyed, this represents the largest quarterly decline of 9 percentage points. Year-over-year comparisons reveal that three regions report an increase in Outlook, and one reports no change.
The Survey released today revealed that Q2 hiring is expected to be positive in all of the 32 countries and territories surveyed. The most favourable Q2 hiring plans globally were reported by employers in Singapore, India, Peru, Romania, Costa Rica, Argentina, Poland, Hong Kong, Australia, Greece and South Africa, with those in Singapore, Hong Kong and Australia reporting their most optimistic hiring plans since the survey began there. Conversely, employers in Spain and Italy report the weakest job prospects in the next three months.
Employers in 16 countries and territories are reporting weaker hiring plans compared to Q1of 2008, while those in six are reporting improved hiring plans from one year ago.
Of the 17 countries surveyed in the Europe, Middle East and Africa (EMEA) region employers in Romania, Poland, Greece, S. Africa and Norway are most optimistic about adding to their workforces. In contrast, hiring optimism among Irish and Spanish employers fell considerably from one year ago, with the Outlook in Italy and Spain being the weakest in the region. Across the Americas, employers in Peru, Costa Rica and Argentina are most optimistic about hiring in the next three months, while those in Canada are the least optimistic. Meanwhile, Mexican employers continue to report steady, upbeat hiring expectations.
In Asia Pacific region, employers in Singapore are the most optimistic with a Net Employment Outlook of +60% followed by those in India [+36%] while employers in China reported the weakest hiring forecast in the region for the third consecutive quarter. The forecasts for Singapore, Hong Kong and Australia were the most optimistic reported by employers since the survey began in these geographies in 2003.
About the Survey
The survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. It has been running for more than 45 years and is one of the most trusted surveys of employment activity in the world. It is based on interviews with more than 55,000 public and private employers worldwide and is considered a highly respected economic indicator.