White-collar job market: IT leads to a dry spell in the white-collar job market in July
Data from LinkedIn and top company job boards, collated by specialist recruitment firm Xpheno, showed a third consecutive month of decline in the total number of active white-collar jobs in July to 270,000 from 300,000 in June. and 330,000 in May.
The total number of open white-collar positions accepting applications in July was down 7% year-over-year and matched the lowest number in June 2021, when residents were virtually padlocked at home.
Executives and economists believe that companies will be cautious in their hiring plans over the next two quarters, as the focus is on the global economic outlook and key local indicators, such as inflation at consumption, liquidity management and the broader path of interest rates.
“The drop in hiring in July is a reflection of the broader business climate and sentiment in emerging markets as companies brace for an approaching steep curve,” said Xpheno co-founder Anil Ethanur. . “India’s situation is relatively better than other countries, but a 7% growth forecast does not require large recruitments in the white-collar segment, which is mainly done with a view of higher growth. term and future,” said Madan Sabnavis, Chief Economist,
Acceleration in hiring is unlikely unless macroeconomic factors improve.
“Some sectors, such as infrastructure – metals, chemicals and cement – will fare relatively better in terms of job creation,” Sabnavis said. “Consumer-focused companies will be slow and more cautious in hiring amid rising inflation and weak consumer sentiment.”
While private sector investment spending shows signs of recovery, hiring in durable asset sectors has accelerated. Vimal Kejriwal, MD and CEO,
, part of the RPG Group, said: “The infrastructure sector is doing well. We are hiring more white collar workers this year than a year ago. Our most recent hiring is 25-30% higher than last year.
To be sure, macroeconomic headwinds persist as the United States, the world’s largest economy, entered a technical recession in the second quarter of this year. On Tuesday, the International Monetary Fund also lowered India’s growth outlook for FY23 to 7.4% from 8.2% previously forecast, attributing the downgrade to the economy’s vulnerability to adverse events. less favorable external conditions and more rapid policy tightening. In April, the IMF lowered the growth projection by 9%, citing rising commodity prices.
Data showed the IT services sector saw its largest month-over-month decline of 16% in job vacancies as business leaders braced for a volatile macro environment in the coming quarters. The IT collective in the services, product and internet sectors added 172,000 jobs in July, compared with 200,000 in June.
The IT cohort’s contribution to overall active openings dropped to 64% (from typically over 80%), the lowest contribution the industry has seen in the last 30 months. In contrast, non-tech sectors such as hospitality and tourism, manufacturing, automotive, oil and energy, and telecommunications saw a marginal increase in hiring, contributing 28% of the total number of hires. jobs compared to 25% a month ago.
“Given global macroeconomic uncertainty and the risk of a recession in the United States, technology executives are currently being cautious in hiring new talent and building a bench at the scale that we’ve seen over the past two years,” said Nitin Bhatt, technology sector leader, EY. “It has become a critical imperative given the current pressures on margins.”
MACRO FACTOR MONITORING
Companies closely follow macroeconomic developments.
“Macro factors are impacting the labor market and that will continue over the next two quarters,” Yashwant Mahadik, global president of human resources at Lupin, told ET. “At this time, although local factors are good for the pharmaceutical sector and companies are hiring in new areas of activity such as digital transformation, traditional jobs will be stable.”