Manufacturing, services, wholesale & retail trade to see weakest hiring plans for July-Sept: Manpower survey

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Updated: Jun 10, 2020 7:33 AM

Hiring prospects weakened in all four regions — north, south, east and west — when compared with the previous quarter, including decrease of nine percentage points in two regions, the north and the east.

The survey was conducted on a representative sample of 695 employers from small, medium and large businesses.

Hit by Covid-19 pandemic and the resultant lockdown-induced disruptions, Indian employers appear to have taken a cautious approach for their hiring plans for third quarter (Q3) or July- September period of 2020. Painting a gloomy picture, the Manpower Group’s Employment Outlook Survey for the July-September quarter revealed that when compared with the Q3 of 2019, the services and manufacturing sectors reported considerable declines of 13 and 10 percentage points, respectively, in hiring intentions while the wholesale and retail trade sector outlooks decreased by seven percentage points.

The hiring prospects are likely to be one of the record lows, with only 5% employers anticipating an increase in payrolls, 2% expecting a decrease and 47% forecasting no change, the survey said. The employment outlook in India for Q3 of calendar year (CY) 2020 has hit a 17-year low, with employers in manufacturing, services, and wholesale and retail trade reporting their weakest forecasts since the practice of conducting the survey began in 2005, said the Manpower Group.

The survey was conducted on a representative sample of 695 employers from small, medium and large businesses. Sequentially analysing the hiring scenario, the survey said while hiring intentions weakened in all seven industry sectors when compared with the previous quarter, the most noteworthy decline of nine percentage points was reported in the services sector.

The outlook was seven percentage points weaker in three sectors — the manufacturing sector, the public administration and education sector, and the wholesale and retail trade sector. In both the mining and construction sector, and the transportation and utilities sector, the outlook decreased by four percentage points.

Employers are expected to add to payrolls in all seven industry sectors during the upcoming quarter. The strongest hiring pace is anticipated in the mining and construction sector while finance, insurance and real estate sector employers forecasted modest job gains.

Again, in terms of organisation size, the strongest hiring pace was forecasted by medium -size businesses. Hiring prospects declined by nine percentage points for large employers when compared with the previous quarter, while employers in both medium- and small-size categories reported decrease of seven percentage points.

In a year-over-year comparison, hiring plans weakened in all three categories in terms of size. While small employers reported a considerable decline of 13 percentage points, outlooks were 10 and eight percentage points weaker for large- and medium-size employers, respectively.

Hiring prospects weakened in all four regions — north, south, east and west — when compared with the previous quarter, including decrease of nine percentage points in two regions, the north and the east.

In the west, employers reported a decline of eight percentage points, while the outlook for the south was six percentage points weaker.

Considerable decrease of 11 percentage points was reported in both the south and the west, while employers reported a decline of eight percentage points in the north. In the east, hiring prospectus was six percentage points weaker, stated the survey.

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