Indian jobs market set to grow by 8.3% in 2024, according to new survey
The jobs market in India is expected to grow 8.3% this year, with recruitment showing signs of recovery in December 2023, according to the latest foundit Annual Trends Report.
The report said there had been a 2% growth in hiring during that month, and that the trend was set to continue in key sectors including manufacturing, BFSI, automotive, retail, and travel and tourism.
According to the data from the foundit Insights Tracker (fit), hiring activity in 2023 was 5% lower than in 2022, indicating a slowdown in the job market.
However, it also showed a 2% increase in the last month of 2023, suggesting a possible turnaround in recruitment.
“The economy experienced a shift towards the end of 2023, breaking the previous trend that had been consistent since mid-2022. The job market entered a phase of variability, where both quit and hiring rates stabilised,” the report said.
“Despite the lower number of job openings, the imbalance between job openings and hires pointed to the ongoing difficulties for businesses to find the right talent.”
It added that in 2023 “certain sectors showcased remarkable resilience and growth, becoming beacons of success amid a challenging environment”.
The maritime and shipping industry saw a 28% increase in recruitment, while retail and the travel and tourism sectors both saw a 25% rise. Advertising, market research and public relations sector saw an 18% increase, the report said.
The report also said increased demand for talent with expertise in emerging technologies is anticipated in 2024.
While initial delays in IT hiring are possible, demand for AI/ML, data science and cybersecurity experts is expected to go up as these skills are essential for enabling digital transformation, innovation, and security across sectors, the report said.
“Stepping into 2024 marks a shift from resilience to an era of remarkable growth in certain sectors. Despite increasing role of automation, it’s crucial to acknowledge that the human touch remains unparalleled in a tech-driven world, underscoring the importance of upskilling initiatives,” foundit CEO Sekhar Garisa said.
The foundit Insights Tracker analysed data on its platform from January 2023 to December 2023.
The good news on the employment front comes as a leading rating agency raised its estimate for India’s GDP growth in FY2023-24 to 6.7% from its earlier projection of 6.2%. India Ratings and Research cited higher-than-expected growth during the September quarter, and sustained government expenditure as reasons for its revised forecast.
The rating agency, part of the Fitch Group, however, warned that India’s economy faces challenges from slowing exports and risks to global growth amid the monetary policy tightening pursued by the central banks in advanced economies.
Central bank updates definition of politically-exposed persons for AML
Changes to make it easier for Politically-Exposed Persons (PEPs) to carry out various banking transactions, including getting loans, have been unveiled by Reserve Bank of India (RBI).
The central bank said there had been a lack of clarity on the definition, leading to issues for bankers, parliamentarians and others. It added that in certain quarters PEPs were finding it difficult to get loans or open bank accounts.
In the amended Know Your Customer (KYC) rules, the central bank defines PEPs as “individuals who are or have been entrusted with prominent public functions by a foreign country, including the heads of states/governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials”. The new rules also include a person who is entrusted by a foreign country with a public function.
The central bank has asked chairpersons and chief executives of banks and other financial services companies which lend to businesses and individuals to make the changes effective immediately.
