With 5% of employers anticipating an increase in payrolls, 2% expecting a decrease and 47% forecasting no change, the resulting Net Employment Outlook(NEO) is +3%.
Indian employers report cautious hiring plans for the third quarter of 2020, according to a survey by Manpower Group which said hiring intentions are the weakest reported since the survey began in 2005. The prospects declined by 7 percentage points when compared with the previous quarter and by 9 percentage points in comparison with last year at this time.
With 5% of employers anticipating an increase in payrolls, 2% expecting a decrease and 47% forecasting no change, the resulting Net Employment Outlook(NEO) is +3%. The NEO is 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 in the next quarter. Adjusted for seasonal variation, the Outlook stands at +5%.
The survey covered 695 employers across India showed that sectors which will lead the job market are likely to be the mining and construction, finance, insurance and real estate sectors. The strongest hiring pace will be recorded in the medium sized organisations followed by the large sized and small sized organisations.
The survey found that hiring intentions in three of the seven Indian industry sectors— manufacturing, services and wholesale & retail trade are the weakest reported since the survey began 15 years ago. Transportation & Utilities sector employers match the weakest forecast in the sector since the survey began, last reported in 1Q 2020.
While employers expect to add to payrolls in all seven industry sectors during the upcoming quarter, the strongest hiring pace is anticipated by Mining & construction sector employers with an NEO of +12%.
Finance, Insurance & Real Estate sector employers forecast modest job gains, reporting an Outlook of +9%, while Outlooks of +6% are reported in public administration & education, the transportation & utilities sector and the wholesale & retail trade. Elsewhere, cautious Outlooks of +4% and +2% are reported in the Services sector and the Manufacturing sector, respectively.
From a region perspective, North and South regions indicate a more positive outlook compared to the West and East.