Mumbai, June 5^th, 2024 – foundit , India’s leading talent platform, published the foundit Insights Tracker (fit), presenting the latest findings on hiring trends for May 2024.

According to the tracker, the overall hiring index shifted from 265 in May 2023 to 295 in May 2024. Compared to the previous year, there was an (11%) increase in hiring, indicating a substantial recovery in employment opportunities. The tracker indicated that hiring in tier-2 cities has shown consistent growth trends compared to the metropolitan areas, with cities such as Kochi, Coimbatore, and Jaipur emerging as key hiring locations.

Offering a hiring overview for May 2024, Sekhar Garisa, CEO, foundit (previously Monster APAC & ME), a Quess company, said, “It is remarkable to note the flourishing performance of tier-2 cities in terms of hiring, outpacing their metropolitan counterparts. These cities have showcased consistent upward trends, particularly driven by the Production and Manufacturing sector, where we are witnessing a surge in recruitment. This can be attributed to several factors, including infrastructural development, favorable government policies, and a burgeoning talent pool eager to contribute to India’s industrial landscape. It’s evident that tier-2 cities are becoming increasingly attractive hubs for businesses seeking expansion opportunities and tapping into diverse talent pools for sustainable growth.”

Tier-2 talent hotspots: Kochi, Coimbatore, and Jaipur lead in annual hiring surge

With cities such as Kochi, Coimbatore, and Jaipur dedicating resources to infrastructure development initiatives, and enhancing connectivity, transportation, and other amenities, corporate firms are bound to be attracted here for their business expansions. These enhancements provide superior logistics, market accessibility, and an improved quality of life for employees, which makes tier-2 cities a key hiring location for recruiters.

In terms of the metro cities, Kolkata and Delhi/NCR stand out as leading hiring hubs on a YoY basis. While tier-2 cities have outperformed metro cities on a YoY basis, metros have witnessed a significant upswing in hiring in the last few months.

According to the tracker, tier-2 cities are seeing stronger growth rates in sectors like Production and Manufacturing (29%), IT- Software & Services (17%), Real Estate (8%), and Education (8%), where recruiters are seeking diverse talent with specialised skill sets. Metro cities have shown an affinity for hiring from IT-Software & Services and Advertising, MR, PR industries, due to the uptick in the demand for IT service providers and digitalisation, signalling a recovery from the layoffs and reduced bench strength.

Tier-2 Vs. Metros (Annual Hiring Trends)

As far as the salary trends for metros and tier-2 cities are concerned, the average minimum salary in a metro city ranges from INR 4.83 LPA to INR 6.63 LPA, while the average maximum salary ranges between INR 8.09 LPA to INR 15.98 LPA. Meanwhile, the average minimum salary in a tier-2 city ranges from INR 4.01 LPA to INR 5.43 LPA and the average maximum salary ranges from INR 7.12 LPA . to INR 11.01 LPA.

India’s Production, Manufacturing, and Telecom Sector Sees Hiring Revival 

Production and Manufacturing sector witnessed a remarkable (47%) YoY surge in hiring, fueled by various factors, including the growth of the large modern manufacturing in India, aided by government push in PLI, infrastructure development, and policy intervention on imports/exports. The increased demand is evident not only within the sector but also in related industries such as Home appliances and Electrical components, which witnessed a 35% growth in hiring.

Telecom/ISP sector has seen notable growth over the past month and on an annual basis, recording a 9% YoY growth. This surge is largely credited to heightened annual investments in telecommunication services and the relaxation of FDI norms. Moreover, India’s telecom landscape is expanding, driven by rising demand for end-user applications and advancements in markets such as IoT, cloud computing, data centers, and the upcoming 5G technology. Additionally, the country is experiencing a significant uptick in internet usage, further fueling the sector’s growth.

The Healthcare industry has also shown a revival, witnessing a (29%) YoY increase and a (4%) monthly increase in hiring. Meanwhile, sectors such as Agro-based industries (-16%), Shipping/Marine (-30%), FMCG (-9%), Import/Export (-16%) saw a yearly downtrend in hiring. Retail (18%), Oil/Gas/Petroleum (22%), Real Estate (20%), and IT (20%) industries showcased moderate growth in hiring.

Digitalisation and social media popularity uplift Arts/Creative job roles; while Customer Service job roles face headwinds

With the growing popularity of digital and social media marketing, there has been a month-on-month surge in demand for Arts/Creative professionals (4%), particularly for positions such as Graphic Designers and Animators. Organisations today are seeking to increase website traffic and convert online leads with the help of skilled and knowledgable Marketing and Communication specialists, who have also recorded a (16%) YoY increase in hiring. The job roles showing a downward trend in hiring include Customer Service (-25%), due to the adoption of AI-based chatbots and virtual assistants.

Other job roles that have showcased growth in hiring include Hospitality & Travel, a (23%) year-on-year increase and a (1%) monthly increase from April 2024 to May 2024. The growth is driven by a significant emphasis on sustainable development and increased demand at airports and from hotels.

Professionals in Software, Hardware, and Telecom roles saw an 11% increase in May 2024, mainly in metropolitan areas that emphasise skill-based recruitment.

Hiring of senior and mid-senior level professionals witnesses a growth

According to the tracker, demand for mid-senior level professionals with 7 to 10 years of experience grew by 9% year-on-year. Senior-level professionals with more than 15 years of experience saw a 17% year-on-year increase in hiring. Additionally, hiring for Associate roles with 4-6 years of experience grew by 2% over the last month as well as annually.