The job scene is changing. Even as IT and other traditional people-intensive sectors such as gems and jewellery have been cutting down on hiring, emerging areas such as e-commerce and aviation are taking on people.
Data from the Labour Bureau in the Ministry of Labour & Employment show that hiring across eight people-intensive sectors has been falling for the last three years. Leading these sectors is the IT sector, which accounts for a fourth of organised private sector jobs.
In 2013-14, job additions by these eight sectors, at 276,000, was 70 per cent lower than the 978,000 jobs they added in 2010-11. These numbers include full-time as well as contractual employees. The IT sector led in the pruning of new jobs, adding only 77,000 workers in 2013-14 compared with 120,000 hires the previous year and 670,000 three years ago.
This reduction in hiring is a result of companies trying to rein in employee costs, which were outpacing revenue growth.
A recent Crisil report has predicted that the declining trend in hiring will continue. With IT vendors expected to move up the value chain and also optimise on costs, the focus will now be on hiring those with domain-specific skills as also on just-in-time hiring against mass recruitment of freshers.