After a challenging year amid global headwinds and cash-crunch back home, the job market is heading for yet another gloomy year with employers already on 'wait and watch' mode and pay hikes indicating a weak trend, say, experts, reports PTI.
As per the month-on-month analysis, hiring saw lower growth this year as compared to 2015, and actual salary increase was lower than the projected figures of 20 per cent on the higher side, and above 10 per cent on average.
Demonetization and Trump factors
The Centre's demonetisation move and the election of Donald Trump as US President are the two factors likely to impact certain sectors in the New Year. "Consumer-driven sectors like e-commerce, FMCG/CD, and retail did well initially. However, the recent demonetization move has had a drastic impact on the sales and currently we are seeing a slack in hiring there as well for the next 2 years," said Joseph Devasia, Managing Director of global executive recruitment firm Antal International India to PTI.
Demonetization creates formal jobs
The hiring outlook for India got a significant blow post- demonetization and segments like real estate, construction, infrastructure and high-end automobiles will be impacted in the longer term, experts said. They believe, however, that although demonetisation seems like a dampener as of now, it will eventually benefit the country and its youth by creating more formal jobs like never before. "A bold move which is definitely pro formal jobs. Such moves also build the confidence of external investors to set up shop and contribute to the economy," staffing services firm TeamLease Co-Founder EVP Rituparna Chakraborty said.
Good sign for finance and digital payment institutions
Moreover, sectors like fin-tech, digital payments, and banks would be positively impacted by this move and would exponentially multiply their hiring projections. According to Willis Towers Watson, going ahead, only 31 per cent companies are positive about their hiring outlook in the next 12 months and employees are likely to see a single digit salary increase for the first time since 2011.
No hike in pay
"In 2016 salaries were projected to rise by 10.8 per cent, but in reality rose just by 10 per cent. If that pattern continues in 2017, Indian employees could see a single digit salary increase for the first time since 2011," Sambhav Rakyan, Data Services Practice leader, Asia Pacific at Willis Towers Watson told PTI. According to global recruitment tendering platform MyHiringClub.com, though a majority of companies are giving increments this year across professions, the percentage increase is not very attractive and average increment will be just 9 per cent.