White-collar job market sees moderation, marginal drop in hiring volume

India’s white-collar job market saw moderation and a marginal drop in hiring volume in November, after hitting a 20-month high in the number of open job positions just a month ago.

The number of open job positions accepting applications for white-collar professionals in November stood at around 295,000, down from 320,000 in October, as the last 15 days of November saw a 12% fall in hiring numbers compared with the first half, according to data from LinkedIn and top company job boards put together by specialist staffing firm Xpheno.

The 8% drop in hiring volume in November could be attributed to a combination of factors such as a regular fall in hiring action typically witnessed towards the end of the year as well as a temporary knee jerk reaction to resurfacing of infections and a spike in Covid cases in Europe and the US, combined with volatility in the trading markets.

However, job market experts continue to be optimistic even while they are cognisant of the possibilities of further waves of the pandemic. Companies are keeping a close eye on developments related to the recently reported coronavirus variant, Omicron, which is seen posing a high risk of infection surge around the globe by the World Health Organization.

HR heads, economists and top company executives said the future of the white-collar market in India remains bullish as organisations chart out future roadmap amid continued optimism from robust economic growth projections, rise in consumption, new capex cycle in many sectors, and increasing vaccination coverage.

“Given the buoyancy in hiring action witnessed over the last two quarters, the drop in volume in November is comparatively minor and could well pass by as a blip in the radar,” said Kamal Karanth, cofounder, Xpheno. “The overall positive trajectory will be sustained well into the new year and next fiscal,” he added.

“Job market sentiment still continues to be positive despite fears of the new Omicron strain,” said Madan Sabnavis, chief economist, Care Ratings. “In fact, with the services sector opening up more in December, hiring is expected to go up unless things change dramatically due to a more virulent wave,” he said.

Entry-level openings fell by 15% and senior-level openings shrank 20% in November compared with the October counts, according to the data. The technology sector contributed 81% to active white-collar openings in November. The sharpest fall in active openings was in the Internet-enabled sector at 13%. This sector is among the most agile of sectors that can quickly ramp up or slowdown in short-term cycles. However, experts are of the view that the technology sector job market will remain buoyant in the near term even if there is another Covid wave.

“The fundamental driver for this is the crying need of corporates to upgrade their technology estate and embrace digital to increase resilience, reduce costs, instil innovation and enhance their competitive posture. Tech talent that can help with this agenda will continue to be sought after,” said Nitin Bhatt, technology sector leader, EY-India.

Executives said organisations, while cautious and alert about any impending waves, are also better prepared to handle disruptions.

“Second half of 2021 saw a huge recovery in hiring across the board. Hiring trends are advance indicators of broader economic trends. This trend will continue because layoffs during Covid had created a huge pent-up demand. And hiring will take a while to catch up,” said TN Hari, head of HR, BigBasket.

The talent shortage in several sectors will also keep the hiring funnel robust, said experts.

“Hiring has grown by leaps and bounds — there is demand for talent in both tech and non-tech roles … rising attrition is adding to the need for more people. We are keeping a constant eye on Covid-related developments, but I do not see that impacting hiring plans,” said Sudhir Dhar, executive director, HR, at Motilal Oswal Financial Services.