Big job crisis! Survey shows less than fifth of business enterprises intend to hire till September this year

By: |
Published: July 22, 2020 6:45 AM

Those operating in the e-commerce & tech start-ups and into essential retailing and telecommunications space are also hiring. Logistics sector is also doing its bit.

However, the percentage is little higher than the March-June lockdown period when it plummeted to 11%.However, the percentage is little higher than the March-June lockdown period when it plummeted to 11%. (Representative image)

Indicating a bleak job scenario at least till September, a Teamlease survey has found that less than a fifth of the business enterprises are inclined to hire people in the first half of current fiscal. Job opportunities, largely low-paid blue-collar jobs will primarily come from large enterprises; those in the small and medium enterprises (SMEs) sector are still reluctant to increase their fixed costs by inducting more.

According to the staffing agency, the overall hiring sentiment or the percentage of employers likely to hire employees, during the first half of the current fiscal will likely remain low at 18% compared with 97% during the October-March period of the last fiscal. This is mainly due to the cautious approach of the SMEs.

However, the percentage is little higher than the March-June lockdown period when it plummeted to 11%.

According to the survey, which covered 807 small, medium and large enterprises across 21 sectors, the hiring sentiment is better mostly in metro and Tier-I cities such as Bengaluru, Delhi and Hyderabad than in other Tier-II or Tier-III or rural areas.

“Today, organisations are increasingly becoming conscious of the fixed costs and that is one of the major reasons for the slow uptick in the employment sentiment by the mid and small businesses,” said Rituparna Chakraborty, co-founder & executive vice president, Teamlease Services.

The survey found that the hiring sentiment is higher in around 10 sectors (of the 21 sectors it surveyed) such as healthcare & pharmaceutical, educational services and agriculture & agro-chemicals. FMCG (24%), IT (22%) and power & energy (21%) are also doing well.

Those operating in the e-commerce & tech start-ups and into essential retailing and telecommunications space are also hiring. Logistics sector is also doing its bit.

The survey also said that the Covid-19 crisis has resulted nearly across-the-board fall in attrition rates to half or even a fourth of the rates in the previous half year. The biggest fall in the attrition rate — to nearly a fourth or a third of the levels during the previous half year — has been in the travel & hospitality sector, followed by manufacturing, engineering & infrastructure, construction and real estate, among others.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Civil services 2019 results: UPSC rejects social media questioning, issues clarification on results
2Job search for work from home in India rises 442% during Feb-July: Report
3Delhi Police recruitment: Delhi Police invites applications for 5,846 constable posts; check eligibility and other details