Employers gung-ho on hiring plans, finds survey

BANGALORE: There seems to be no stopping the recruitment optimism of Indian companies. Employers have reported another strong net employment outlook of more than 42% in the fourth quarter ’06 Manpower Employment Outlook Survey, indicating that the strong hiring activity seen over the past six months should continue through year-end.

However, India’s net employment outlook is a 1% drop from last quarter while Peruvian employers emerged as the most optimistic globally with an outlook of more than 48%.

Of the 4,732 employers surveyed in India, 45% expect their staffing levels to increase while only 3% expect a decrease. With 41% of employers expecting no change and the remaining 11% unsure of their hiring plans, Indian employers continue to show their optimism about hiring over the next quarter, the Manpower survey says.

The net employment outlook is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this, the percentage expecting to see a decrease in employment at their location in the next quarter.

Jeffrey Joerres, Chairman & CEO, Manpower said, “the hiring intentions reported by employers across the sectors denote significant job opportunities and better prospects for Indian job seekers.

The optimism shown by Indian employers is reflective of the rapid pace at which the Indian economy is growing.” Added Soumen Basu, Executive Chairman, Manpower India, “the improved hiring expectations reported in the finance, insurance and real estate sector is consistent with the heightened activity we are seeing among our clients. Additionally, the entry and growth of multinational banking and finance firms in the subcontinent has fuelled hiring activity in the finance sector.”

The report said that hiring sentiments are positive across the seven industry sectors surveyed — finance, insurance, real estate, manufacturing, mining & construction, public administration & education, services, transportation & utilities, wholesale & retail trade.

Employers in the finance, insurance and real estate sector are the most optimistic about hiring next quarter with a net employment outlook of +50% closely followed by those in the services sector at +45%. The findings also reveal that the transportation and utilities sector has seen a decrease of eight percentage points in outlook from the previous quarter.