India’s white-collar job market in July experienced a shift back to late 2023 levels, deviating from the growth trend observed in the first quarter of 2024. According to a report by The Economic Times, data compiled by staffing firm Xpheno revealed that there were 260,000 active job vacancies across various sectors based on leading job boards and professional networking sites. This marked a decline from the peak in March 2024, where there were 340,000 open positions, reaching a two-year high. The number of active job openings in July reflected a 4 per cent decline from July 2023 and a 10 per cent drop from July 2021, particularly in roles requiring one or more years of experience.
Executives from major corporations attributed the decrease in vacancies to a typical slowdown during election periods and ongoing challenges in the IT services sector, which is a significant contributor to white-collar employment. However, industry analysts anticipate a rebound in job demand in the latter half of the year. This is expected to be spurred by Budget initiatives aimed at boosting employment and anticipated increases in consumer demand, driven by the upcoming festive season, normal monsoon rains, and a pickup in rural economic activity.
The tech sector has seen a 24 per cent growth in demand since December 2023, although this is still 32 per cent lower than the peak demand observed in March 2024. On the other hand, demand in the non-tech sector has slowed, showing a 16 per cent decline since December 2023. Demand in Tier-1 locations has rebounded by 54 per cent since December, although it remains 25 per cent below the peak levels of March 2024.
In contrast, earlier last month, a report highlighted a 7.62 per cent decline in white-collar hiring activity in June, with 2,582 job postings compared to 2,795 in the same month the previous year, according to the Naukri JobSpeak Index. Sectors like telecom, BPO/ITES, education and teaching, and Global Capability Centres experienced a decrease in hiring compared to June of the previous year. However, sectors such as insurance, FMCG and food industry, and pharmaceuticals saw an increase in hiring.
Cities in Rajasthan and Gujarat showed resilience in job creation, with Jodhpur, Kota, Udaipur, Rajkot, Surat, and Jamnagar leading in job creation. On the other hand, larger cities like Bengaluru and Mumbai experienced a decline in hiring activities. Overall, the white-collar job market in India is expected to see fluctuations in the coming months, with analysts predicting a rebound in job demand in the latter half of the year.