Hiring activity sees slowdown in May as recruitment falls 7% YoY; Tier 2 cities show resilience: Report
Hiring activity in May declined by 7% YoY, according to Foundit Insights Tracker, due to economic slowdown and cost-cutting. Only three sectors saw an increase in demand, with HR & Admin roles witnessing an 8% growth.
PremiumHiring activity in the month of May declined by 7% as compared to the same period last year, according to Foundit Insights Tracker, Business Standard reported.
The report shows positive hiring trends in tier-2 cities like Ahmedabad and Jaipur despite a decline in general trend.
In its latest report, talent platform Foundit, formerly known as Monster APAC & ME, indicated that hiring activity across industries declined 4% month-on-month (MoM) decline due to the economic slowdown, which led the companies to cut expenses, including hiring efforts.
The industry is witnessing changes due to the ongoing technological disruption which has led to job changes, impacting hiring activity in general. Moreover, employers face challenges in locating qualified candidates due to a significant skill gap in the nation, thus complicating the hiring process, the newspaper daily reported citing the Foundit Insights Tracker.
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Meanwhile, among the 13 job categories monitored by the tracker, only three sectors saw an increase in demand amid an overall slowdown. The HR & Admin roles witnessed an 8% growth, indicating increased demand for experts, the report added.
Other two sectors witnessing growth in hiring were Sales & Business Development (BD), and Hospitality & Travel categories that saw a slight increase of one percent in e-recruitment.
However, hiring activity in the Banking, Financial Services, and Insurance (BFSI) sector dipped 10% amid global headwinds like rising interest rates, surging inflation and supply chain disruptions.
E-recruitment activity increased in nine sectors out of the 27 industries. The Shipping/Marine industry saw a growth of 45% YoY in hiring activity led by increased port capacity, advanced technological implementation, and environmental sustainability initiatives, the report said.
Among cities, Ahmedabad and Jaipur saw significant rise in hiring, while major cities like Bengaluru witnessed a decline of 24%. Chandigarh, Kolkata, Vadodara, and Kochi also saw a decline in hiring, the report added.
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