Hiring slows down by 7% in May

Mumbai Hiring activities have slowed down by seven per cent in May compared to the same month last year mainly due to companies adopting cautious approach to cut expenses on the back of economic slowdown, a report said on Thursday.

Foundit (formerly Monster APAC & ME) released foundit Insights Tracker (fIT), presenting the latest findings on monthly hiring trends. The latest tracker indicates there has been a seven per cent slowdown in hiring compared to the same time last year. However, despite the general decline, positive trends were seen in tier-II cities like Ahmedabad and Jaipur.

Among cities, Ahmedabad stood out witnessing an eight per cent increase in hiring, while Jaipur also demonstrated a marginal YoY growth of one per cent. However, several major cities have experienced decline in hiring including IT hub Bangalore witnessing a 24 per cent dip. This fall may be attributed to multiple factors, including the rapid automation that is replacing jobs in various industries like the IT sector. Similarly, Delhi/NCR, Mumbai, Pune, and Hyderabad also saw significant YoY declines ranging from 9 per cent to 16 per cent, underscoring the difficulties faced in the job market in these areas, the report added.

The tracker indicated that hiring activity is declining across all industries, with a 4 per cent month-over-month (MoM) decline. The report noted that this decline can be attributed to several factors like economic slowdown, which has forced companies to cut expenses.

Widening Skills Gap

• With 8% growth, Ahmedabad leads the pack
• Bangalore worst hit with 24% dip
• Similarly, Delhi/NCR, Mumbai, Pune, and Hyd also suffered 9-16% decline
• Lack of required skills gap also complicated hiring process
• Shortage of qualified candidates