The Recruitment & Staffing market worldwide was valued at USD 506 billion in 2022 and is projected to expand at a CAGR of 2% to reach USD 568 billion by 2028, according to Market Report World.
April is the peak period for the India Job market. Michael Page India reported India’s labor force expanded substantially, by 25.5 million, to 467.6 million in April, greatly contributed by white-collar recruitment with a 23% increase in the overall number of jobs in 2022 compared to 2021.
Based on app download rankings reported by App Annie in April, the Job and Career market of India is led by LinkedIn, followed by naukri.com, Apna, and Indeed, which all are listed in the top 20.
According to the user acquisition report on the job search category released by MOCA, the leading digital advertising platform, user engagement experienced dramatically increasing, with 15-25% of new users applying for jobs on the apps. Almost all OEM Appstore platforms have demonstrated excellent performance in this category.
Four Industries Drive India Job Market
In terms of categories, Automotive, Manufacturing, BFSI, and Internet Business will continue to drive the India job market. Automotive leads Indian hiring demand with 30%, followed by manufacturing with 25%, BFSI with 24%, and Internet Businesses with 19%, and the hiring in the IT sector is expected to grow at a muted rate of 10%, according to Sectoral Report 2023.
*In Automobile, rapid digitalization and the need for talent equipped with high-tech knowledge drives the demand. With the automobile industry moving towards the EV space, the talent demand is also shifting towards exploring talent from these hubs.
In terms of skills, the top demands are for automobile jobs like Program managers, electronic and mechatronic engineers, expertise in fuel cells, system engineers, system integration, AUTOSAR architecture, and battery management system.
* Banking and Finance sector in India is expected to continue its growth trajectory in 2023, with a focus on further digitization and automation, improved risk management and compliance, and enhanced customer experiences, leading to more customer-facing roles, like business development, sales, collections, client servicing, etc. The candidates are expected to deliver the utmost customer satisfaction with excellent practical knowledge of numbers and accounts and possess analytical skills.
*Internet Business saw a 17% YoY increase in hiring in 2022 over 2021 in both Tier I and Non-tier 1 regions, with 59% hiring will be seen in Tier 1 cities, and a 38% increase in new hires expected from non-tier 1 cities.
The market is expected to increase 15 times to reach $5.5 billion by 2025, mainly contributed by retail in consumer electronics, clothing, grocery, and food. It is predicted the market will overtake the US as the second-largest Internet Business market in the world by 2034.
* Engineering and manufacturing accounts for the largest industrial sector of India, representing 63% of all international cooperation and 27% of all factories in the industrial sector. As many as 50,000 direct jobs have been created in India since August last year, and this momentum is expected to continue.
Companies in the manufacturing sector are increasingly adopting lean manufacturing practices to improve efficiency and reduce waste, leading to increasing demand for professionals with backgrounds in advanced technologies, data analytics, and safety and security in employees and equipment.
Increasing IT Recruiting Demand Shift to Non-tier 1 Cities
In 2022, India’s IT industry experienced a normalization of hiring after a two-year boom.
However, the recruiting demand will be forced to shift to non-tier 1 cities more quickly due to a strong government push, saturation in tier-I cities, and employees’ unwillingness to return to places after they left during Covid. There are thought to be 4.5 million skilled job openings in the India IT industry, but about 80% of the labor in the Indian IT sector is classified as “entry-level”, so finding people with the necessary combination of skills for the job is the biggest challenge for many small IT organizations.
The number of employed people in non-tier 1 cities will increase from 33% in 2022 to 47% in 2023. Data Science was formerly referred to as the trendiest job, but nowadays metaverse and Web3, DevOps, Cybersecurity, Blockchain, Robotic Process Automation, AR/VR in Online Gaming, IT Architecture, and Design Cloud computing will be in high demand.
The Indian IT & business services sector will increase to US$19.93 billion by 2025 and expand at a CAGR of 15% in the next ten years.
Excellent Compensation & Benefits Is Top Priority for Candidate
According to Future of Recruiting India 2023 released by LinkedIn, the top priority for candidates today is excellent compensation and benefits, by a fairly wide margin, followed by work-life balance and flexible working arrangements. Flexibility and compensation are also the two fastest-growing priorities year over year.
Nowadays, candidates are not just thinking about a given job but whether that employer is the right career destination, which is especially true for Gen Z, but holds true across the global workforce. Advancement and skill developments were the #2 and #3 top priorities for them.
The priorities of Gen Z, the younger generation, differ significantly from those of their parents, Gen X. Career advancement and skill development are highly valued by younger candidates, and they are over 50% more likely than Gen X to prioritize upward mobility.
The report also showed Job seekers spend up to 37% more time on career sites that have video testimonials, and the inclusion of video testimonials in job ads can lead to a 34% increase in applications.
Leading Companies Are Prioritizing Employer Branding
Employers’ candidate selection is primarily influenced by the candidate’s skill set. Over the years, there has been a significant increase in the use of skills filters by recruiters on LinkedIn, with a 25% growth since 2019. Currently, recruiters are 50% more likely to search for candidates based on their skills than their years of experience.
Leading companies are prioritizing Employer Branding by establishing a reputation as the preferred workplace, emphasizing factors such as competitive pay scales and attractive perks. The LinkedIn Report said the labor market continues to be highly competitive, with talent expected to maintain a strong position in the coming years.