Positive Signs: Job market recovery projected with 8.3% overall hiring growth

The job market is anticipated to witness an 8.3% growth in hiring this year, reflecting signs of recovery in December, according to the Annual Trends report. The month of December alone saw a notable 2% increase in hiring.

It projected an overall hiring expansion of 8.3 per cent for 2024, with Bengaluru expected to see an 11 per cent surge. Key sectors that will experience increased hiring include manufacturing, BFSI, automotive, retail, and travel and tourism, the report said.

Hiring activity in 2023 was 5 per cent lower than in 2022, indicating a slowdown in the job market.

However, the index also showed a 2 per cent increase in the last month of 2023, suggesting a possible turnaround in the hiring scenario.

The economy experienced a shift towards the end of 2023, breaking the previous trend that had been consistent since mid-2022. The job market entered a phase of variability, where both quit and hiring rates stabilized. Despite the lower number of job openings, the imbalance between job openings and hires pointed to the ongoing difficulties for businesses to find the right talent, the report stated.

In 2023, certain sectors showcased remarkable resilience and growth becoming beacons of success amid a challenging environment, said the report.

The maritime and shipping industry saw a 28 per cent increase in hirings, capitalizing on the increased global trade, and adeptly managing supply chain disruptions, it said.

Simultaneously, retail, and travel and tourism sectors, both witnessed a 25 per cent uptick, while advertising, market research and public relations sectors saw an 18 per cent increase, it said.

Meanwhile, the report further said increased demand for talent with expertise in emerging technologies is anticipated in 2024.

While initial delays in IT hiring are possible, demand for AI/ML, data science, and cybersecurity experts is expected to go up as these skills are essential for enabling digital transformation, innovation, and security across sectors, as per the report.

Stepping into 2024 marks a shift from resilience to an era of remarkable growth in certain sectors. Despite the increasing role of automation, it’s crucial to acknowledge that the human touch remains unparalleled in a tech-driven world, underscoring the importance of upskilling initiatives.