Continuing the recovery from the COVID-19 pandemic and benefitting from multiple government initiatives, Bengaluru, Mumbai and Chennai have emerged as the cities with the highest hiring sentiment in the services and manufacturing sectors respectively, according to a survey between January to March, 2023.
Close to 97% employers across both cities have expressed higher hiring intent for their corresponding sectors. For the services sector, Chennai (94%), Delhi (90%), Hyderabad (86%) and Mumbai (85%) follow suit as top locations; and for manufacturing, subsequent top cities include Bengaluru (94%), Chennai (89%), Delhi (84%) and Pune (73%). Incidentally, Bengaluru, Mumbai, and Chennai have emerged as sweet spots from a holistic perspective across sectors.
Overall, while Tier 1 cities lead in terms of hiring intent, Tier 2 cities are also emerging, with close to 75% employers across both sectors indicating positive sentiment. However, Tier 3 (46%) and rural geographies (24%) are lagging considerably. In the manufacturing sector, the intent to hire is greater in metro and Tier 1 cities (94%) as compared to Tier 2 cities (73%), Tier 3 (43%), and the rural sector (23%). On the other hand, for services, in Metro & Tier-1 cities, the hiring intent is at an exceptionally high level (99%), followed by Tier 2 (77%), Tier 3 (49%) and rural (25%).
Experts stated that surplus public investment in PLI schemes, the Indian Government's asset monetization program, increased private participation in key sectors, and the revisions in FDI laws in the defence and telecom sectors has fueled growth in companies across sectors, especially in Tier 1 and Tier 2 locations. Companies are therefore shoring up their talent pool to meet their increasing requirements. The positive hiring outlook will likely continue in the next quarter as well.
Industry-wise, some of the verticals in the services sector looking to hire the most in these locations include, Ecommerce and Allied Startups (98%), Telecommunications (94%), and Educational Services (93%). In manufacturing, Healthcare and Pharmaceuticals (98%), FMCG (86%), and EV and Infrastructure sectors (71%) aim to recruit the most across the top cities. On the other hand, while the global sentiment in the IT sector is not very positive, the Indian economy stands solid and will continue to show resilience even in the IT industry.
From a function perspective, within the services sector, Sales (91%), Engineering (80%), and Marketing (60%) are some of the functions with the highest hiring intent this quarter. The same functions, namely, Sales (98%) leading Marketing (86%) and Engineering (78%) remain in vogue in the manufacturing sector.
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