2024 Job Market Boom, 8.3% Increase in Hiring, Report Shows High Demand Positions in India

Data from the most recent Foundit Insights Tracker(fit) shows that hiring activity decreased by 5% in 2023 compared to 2022, suggesting a downturn in the labor market. In the last month of 2023, the index did, however, also show a 2% gain, indicating a potential improvement in the recruiting situation.

The trend analysis included a detailed forecast for 2024, predicting an 8.3% increase in employment overall, along with an assessment of the sectors and jobs that prospered and encountered difficulties.

In 2023, hiring activity decreases, but in the last month, it begins to increase again.

Towards the end of 2023, the economy saw a change that deviated from the pattern that had prevailed since mid-2022. The employment market went through a period of volatility before hiring and resignation rates began to level down. The disparity between job opportunities and hiring, even with fewer job vacancies overall, indicated that firms are still having trouble finding the proper people.

Consumer Spending Rebound and Digital Innovation Drive Growth in Important Sectors in 2023

Some industries shown incredible tenacity and expansion in 2023, emerging as success stories in a climate full with obstacles. The marine and shipping sector had a 28% growth, leveraging the rise in international commerce and skillfully handling supply chain interruptions.

Concurrently, the Retail and Travel & Tourism industries had a 25% boom, benefiting from the revival of consumer spending. The growth of e-commerce and digital marketing is credited with the 18% increase in the advertising, market research, and public relations (PR) industry. A consistent 12% rise in NGOs and social services indicates a sustained dedication to social concerns.

The 6% growth in office equipment/automation is a sign of the increasing significance of automation in optimizing corporate operations. The sectors of Oil/Gas/Petroleum, Power, and Garments/Textiles/Leather, Gems & Jewellery, saw growth rates of 4% and 1%, respectively.

Technology, Education, Manufacturing, and FMCG Are Affected by Skill Gaps, Supply Chain Disruptions, and Inflation

Conversely, certain industries had negative growth due to serious difficulties. An 18% decrease in IT hardware and software was caused by competitive pressures from across the world, oversaturated markets, and talent shortages. There was a decrease in hiring in the banking/financial services, insurance, biotechnology, healthcare, and pharmaceutical industries (-9%) as well as the pharmaceutical, biotechnology, and life sciences sector (12%).

An 8% decrease in manufacturing was a result of supply chain problems and increased input prices. With a hiring decline ranging from 8% to 4%, BPO/ITES, Engineering, Cement, Construction, Iron/Steel, and Education all had difficulties. FMCG/Food & Packaged Food had a 3% decrease as a result of changing consumer behavior and inflation.

HR & Admin Prominent as Businesses Give Priority Management of the Workforce and Engagement

Functional positions inside organizations saw notable changes that were a strategic reaction to the changing business environment. Demand for HR and administrative roles increased by 9%, underscoring the need of effective workforce management and employee engagement initiatives.

The hospitality and travel industry had a noteworthy 9% gain, following a similar development pattern. On the other hand, a larger industry trend was reflected in the 24% decrease in customer service positions, which was brought about by a rise in automation and the use of technology in customer support operations.

Roles in finance and accounting were stable, with a flat growth rate of 0%, indicating a stable recruiting environment in this functional area. On the other hand, there was a minor 1% decrease in demand for experts in Sales & Business Development and Legal jobs over the course of the year.

In a similar vein, the Engineering/Production sector had a little decline of 3%, indicating the difficulties that these companies confront—which may be impacted by variables like supply chain interruptions and unpredictability in the global economy.

The impact on purchase, logistics, and supply chain was 5%, highlighting the additional repercussions of changes in the world economy.

While hiring for senior management positions decreased by 12% overall, there has been a substantial uptick of 9% in the previous month, suggesting that demand for these positions may be shifting or perhaps rising, particularly in the Manufacturing & BFSI sectors. This pattern can be a sign of a deliberate reassessment of organizational leadership hierarchies, suggesting a steady expansion that is likely to continue.

In the meanwhile, there was a 13% drop in jobs related to software, hardware, and telecom, which may have been caused by industry needs shifting and technological saturation.

Tier-2 Cities’ Emergence as Potential Growth Engines: Cost Competitiveness

In 2023, there was a noticeable change in the regional hiring trends, which was mostly caused by cost concerns and the higher standard of living in smaller cities. Ahmedabad, which has grown by 6%, is now the leading center for recruiting, drawing in businesses with its skill pool and affordable labor.

Conversely, conventional employment heavyweights like as Bangalore and Pune had decreases of 16% and 13%, respectively. Skill shortages are to blame for the downturn in these IT-centric cities, highlighting the critical need for ongoing upskilling and market-driven adaptation.

Conversely, smaller cities with the potential for future development and cost competitiveness, such as Baroda (-1%) and Coimbatore (-5%) were able to weather the storm with a slight fall. Resilience was evident as Kochi (0%) and Jaipur (0%) both saw flat growth.

Delhi-NCR, Chennai, and Mumbai had hiring declines of 5%, 8%, and 7%, respectively, while Hyderabad led the way with an 11% decline. These communities may have to reassess their plans in order to take advantage of new possibilities or solve difficulties unique to their sector.

Prospects for 2024: Upward Trends in the Labor Market and New Developments

Foundit predicts an 8.3% increase in employment across the board as companies get ready for 2024, with Bangalore leading the way with an 11% increase. In terms of industries, Manufacturing, BFSI, Automotive, Retail, and Travel & Tourism are important ones that will see a rise in hiring.

Technological Advancements to Look Forward to: In 2024, there will likely be a greater need for personnel with experience in developing technologies. The need for AI/ML, Data Science, and Cybersecurity specialists is predicted to surge, notwithstanding the possibility of early hiring delays in the IT sector. These abilities are necessary to support innovation, security, and digital transformation in many industries.

Initiatives for Sustainability and Green Practices: Sectors that prioritize sustainability will give priority to jobs involving eco-friendly practices and green initiatives. These positions will support organizations in identifying and addressing opportunities and risks related to governance, social, and environmental issues.

Strategic Advice in a Changing Environment: In a changing corporate environment, consulting companies will look for experts with a variety of skill sets to provide strategic advice. These experts will support organizations in navigating the possibilities and problems brought about by regulatory changes and technology improvements.

Financial Expertise in High Demand: In 2024, there will likely still be a need for professionals with experience in risk management, financial analysis, and compliance. These professionals will assist organizations with risk management, financial management, and regulatory compliance.

Fractional Hiring: With a shortage of qualified labor, the emphasis will move to fractional hiring, which will allow for the use of specialized knowledge without requiring full-time commitments and improve operational efficiency and agility.

2024 Talent Strategy: To remain relevant and competitive in the changing environment, there will be a higher focus on skills evaluation, training, and career advancement. As a result, it will be critical to investigate and incorporate AI technologies in addition to talents.

“Stepping into 2024 marks a shift from resilience to an era of remarkable growth in certain sectors,” said Foundit CEO Sekhar Garisa. It involves more than just growing teams—rather, it involves radically rethinking our hiring process. The secret to success in an ever-changing environment is to prioritize investments in cutting-edge technology like artificial intelligence, promote sustainable practices, and seek out strategic advice.

The need of upskilling programs is highlighted by the fact that, in a tech-driven world, the human touch is still unmatched, even in spite of the growing role of automation. In this changing job market, businesses who go above and above the norm and actively engage in their employees, support diversity, and spearhead sustainable practices will attract and keep the best talent, according to Garisa.