MSME jobs: More small businesses likely to hire people during Q2FY22 amid Covid relaxations

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Updated: July 29, 2021 5:03 PM

Skill, Labour, Talent for MSMEs: Recently, a Parliamentary panel in its report on Covid impact on MSMEs had recommended the government to consider a new National Employment Policy, and a National Electronic Employment Exchange to provide employment to skilled manpower in their area of expertise.

Further, the data revealed that there has been a 21 per cent improvement in hiring in the banking sector in June compared to May.44 per cent large enterprises were looking to hire talent during the current quarter in comparison to 40 per cent in the preceding quarter.

Skill, Labour, Talent for MSMEs: The hiring intent among small and medium enterprises (SMEs) for the current quarter (July-September FY22) has improved significantly in comparison to the previous quarter on the back of relaxations in Covid-related restrictions. Of 661 small, medium, and large enterprises surveyed for a TeamLease report on the employment outlook, 26 per cent small businesses were likely to hire employees (intent to hire) during the current quarter, up from 20 per cent for the quarter ending June 30, 2021, in comparison to the improvement from 19 per cent in Q4 FY21. “The relaxing of restrictions across cities during the second and the third weeks of June let nimble small businesses and aggressive large enterprises to ramp up capacity and resume operations,” TeamLease said.

While 44 per cent large enterprises were looking to hire talent during the current quarter in comparison to 40 per cent in the preceding quarter, the rate of improvement in the intent to hire among medium enterprises had slowed down marginally. From 19 per cent in Q4 in the previous fiscal year, the intent to hire had improved to 22 per cent in Q1 FY22 and now to 24 per cent. “E-commerce firms being allowed to operate without restrictions in May facilitated more and more small businesses that have learned the ropes of door delivering products, services, and amenities via hyper-local delivery apps to get back on their feet,” the report added. Online channels had witnessed tailwinds post Covid as consumers had started to shift to e-commerce buying. As a result, this helped micro and small enterprises to leverage the period and grow.

E-commerce and technology are not only Covid-proof sectors but are proving to be ‘Covid-boom’ sectors and are looking to grow even more as per the latest Employment Outlook Report for Q2-FY22. We believe that this is a direct factor of, and an indication towards, the ever-increasing influence of remote and hybrid workforce practices enabled by constantly evolving technology products and solutions. SMBs also will have to evolve quickly to adopt this ‘new normal’ of technology and hybrid workforce in order to not just survive but even to compete effectively going forward,” Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services told Financial Express Online.

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According to a recent survey by the Consortium of Indian Associations of over 81,000 self-employed individuals and SMEs, 59 per cent had reduced their staff or sacked or removed them in comparison to the pre-Covid period while 42 per cent were unable to decide on retention of employees. Earlier this week, a Parliamentary panel in its report tabled in Rajya Sabha on the Covid impact on MSMEs had noted that “a large number of jobs were lost due to Covid-19 Pandemic.” The panel in its report had recommended the government that a new National Employment Policy may be considered along with exploring the feasibility of establishing a National Electronic Employment Exchange and building a skill-based database to provide employment to skilled manpower in their area of expertise. 

The TeamLease report further noted improvement in hiring intent among startups and e-commerce as well to 53 per cent from 51 per cent for the April-June quarter. The report noted that the B2B marketplace for kiranas Jumbotail is looking to hire more than 100 employees across multiple geographies in a quarter while Zomato is planning to increase participation of women delivery by almost 10 per cent. Moreover, Avaali Solutions is also planning to recruit more than 50 freshers every quarter in the areas like product development, technologies like AI, automation skills, etc.

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