The latest data from the Foundit Insights Tracker (FIT) indicates a 5% decline in hiring activity in 2023 compared to 2022, signalling a slowdown in the job market. However, a 2% increase in the last month of 2023 suggests a potential turnaround. The FIT trend report provides insights into thriving and challenging industries, along with a comprehensive outlook for 2024, projecting an overall hiring expansion of 8.3%.
Key Findings and Trends
1. Industry Resilience and Growth
- Maritime and Shipping: Surged by 28% on the back of increased global trade and adept supply chain management.
- Retail and Travel & Tourism: Both witnessed a 25% uptick, benefiting from the resurgence in consumer spending.
- Advertising, Market Research, and PR: Experienced an 18% increase due to the rise of digital marketing and e-commerce.
- NGOs and Social Services: Demonstrated steady growth at 12%, reflecting a continued commitment to social causes.
- Office Equipment/Automation: Saw a 6% increase, emphasising the growing importance of automation in business processes.
2. Challenges in Specific Sectors
- IT-Hardware and Software: Faced an 18% decline due to challenges from saturated markets, skill gaps, and global competition.
- Healthcare, Pharmaceuticals, Biotechnology & Life Sciences: Registered a 12% decline.
- Banking/Financial Services and Insurance: Experienced a 9% decline in hiring.
- Manufacturing: Faced disruptions with an 8% decline, attributed to supply chain issues and rising input costs.
- BPO/ITES, Engineering, Cement, Construction, Iron/Steel, and Education: Faced challenges with hiring dips ranging from 8% to 4%.
- FMCG/Food & Packaged Food: Saw a 3% decline, impacted by inflation and changing consumer habits.
3. Shifts in Functional Roles
- HR & Admin: Witnessed a 9% increase in demand, highlighting the importance of efficient workforce management.
- Hospitality & Travel: Displayed a notable 9% growth.
- Customer Service Roles: Faced a 24% decline due to increased automation in customer service functions.
- Finance & Accounts: Maintained stability with flat growth.
- Sales & Business Development and Legal Roles: Experienced a marginal decline of 1%.
4. Geographical Hiring Patterns
- Notable shifts in 2023 with smaller cities like Ahmedabad experiencing 6% growth, while traditional hubs like Bangalore and Pune witnessed declines of 16% and 13%, respectively.
- Tier-2 cities demonstrated resilience, with cities like Baroda (-1%) and Coimbatore (-5%) showcasing moderate dips.
5. 2024 Outlook and Emerging Trends
- Overall hiring expansion projected at 8.3%, with Bangalore expected to surge by 11% among metros.
- Anticipated technological advancements, sustainability initiatives, and green practices are expected to influence hiring trends.
- Fractional hiring and a focus on skills assessment, training, and career progression are highlighted as key trends for 2024.
Insights from Sekhar Garisa, CEO of Foundit
Garisa emphasised the need for companies to reimagine their approach to recruitment, prioritising investments in cutting-edge technologies, fostering sustainability practices, and seeking strategic guidance. He highlighted the importance of upskilling initiatives and acknowledged the unparalleled value of the human touch in a tech-driven world.
The hiring landscape, as revealed by the FIT data, reflects both challenges and opportunities. While certain industries have demonstrated resilience and growth, others have faced disruptions. As businesses enter 2024, the emphasis on technology, sustainability, and strategic guidance is expected to shape hiring trends, requiring a proactive and adaptive approach from organisations.
