July 2011 RecruiteX 8 points ahead compared to December 2010
RecruiteX is the Recruitment Index for India. It is the only report, which decodes the hiring trends in the country after evaluating the demand and supply of talent across industries. Launched in May 2011, RecruiteX, in its most explicable format, is aimed to provide a detailed insight of the recruitment market in India to employers, recruiters and job seekers alike.
- (1888PressRelease) September 03, 2011 - Following increased hiring activity in previous quarter, the demand for talent in July 2011 witnessed a dip. However, the market sentiments are positive compared to December 2010.
RecruiteX for July 2011 pointed towards a rationalising and stabilising jobs market. The supply of professionals also witnessed its first downward trend in July since the last six months. The Demand and Supply indices declined by 3% and 12%, respectively, in July 2011 as compared to June 2011.
The demand curve has been slipping after reaching its highest in May 2011. The demand dropped by 3% in July 2011 following a previous 9% decline in June 2011.However,it was still 8 points ahead as compared to the base mark of 100 in December 2010.
On the supply side, recruitment index witnessed a 12% decline. This drop in supply of talent has come after a long growth period from February 2011 to June 2011. The growth in supply in previous months was due to the addition of fresh talent coupled with employees' tendency to shift post-appraisal cycle in March - April 2011. During this period the indices more than doubled from the base mark of 100.
Most of the major industries, including Manufacturing & Engineering, Consumer Durables/FMCG, BFSI and ITeS witnessed a decline of 2-9% in demand in July 2011. Supply of talent dropped across industries barring few industries such as Consumer Durable/FMCG, Projects/Infrastructure, Retailing and BFSI, which continued to attract job seekers. Consulting Services (7%) is the only industry that has not yet registered any decline in 2011. This reinforces the finding of RecruiteX June 2011 report which pointed out the growing trend of temporary/ consulting/ freelancing jobs.
Sharing his viewpoint on the current job market trend and future prospects, Vinay Deshpande, Sr Vice President HR, Mahindra Finance articulated, "We have seen that the general trend on attrition has not shown any significant change compared to the previous years. The main focus area of recruitment is on replacements more than anything else. In the coming months, in our sector, I foresee that the hiring activity will be moderate. Major hiring trends will be tilted towards new business areas. However, in the existing and stable businesses, hiring will again mostly focus on replacements."
The demand for most of the key professions also remained flat during July 2011. Major professions including, IT/Telecom, Engineering, Marketing & Advertising, Accounting & Finance and Sales/Business Development, witnessed a minimal movement in demand. Hospitality (3%), Export/Import (3%) and Logistics/ Supply Chain (2%) professionals recorded the highest growth in demand during July 2011.
Supply of talent across major functional areas declined for the first time since January 2011. Accounting & Finance (-23%), IT/Telecom (-21%) and Engineering (-12%) declined at the highest rate. However, supply of talent in professions such as Front Office/ Administration (43%) and Sales/Business Development (27%) was higher than the market average.
Hiring across major metros and cities was largely stable and showed minimal movement in demand curve. Where smaller cities and states witnessed huge drop in demand, supply of talent from smaller states and locations continued to grow.
Decline in demand for talent largely affected job seekers with over 20 years experience (-34%) and candidates with 10-20 years experience (-12%). On the supply side the trend remained largely even. Supply of entry level candidates continued to grow, while all other experience segments reported a dip in supply. Candidates with less than 2 years experience witnessed their first supply decline of 2011.
Vivek Madhukar, Sr Vice President, TimesJobs.com, sums up the current trend, "The global financial crisis in the United States has made India Inc. a little more cautious. As a result, the demand has dropped. However, hiring is still happening but is careful, restricted and specialised. Industries which are now flourishing in the domestic markets are expected to witness positive sentiments in future. "
On a month-on-month evaluation most key industries, professions and localities witnessed drop in the hiring activity during July 2011 but was positive as compared to base year. The global economic slowdown has created a certain pressures on India Inc. The recruiters are hiring, but are not getting overboard. Same is the case with supply side. The workforce is being vigilant and is not switching jobs extensively.
###
space
space
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam