The mood among HR managers has lately turned gloomy with the economy slowing down on the back of spiraling inflation and rising interest rates. So much so that sunrise sectors such telecommunications and financial services, which were most upbeat about creating new jobs just about a year ago, have now scaled down their hiring needs the most.
According to a joint survey by staffing company TeamLease and Synovate, a research agency, the Employment Outlook Index for the telecom sector and the banking and financial services industries during the July-September has gone down by 5 and 10 percentage points respectively from last quarter.
The Employment Outlook Index is the difference in the number of respondents who report an increase in hiring needs and those who report a decline in hiring needs over the next three months.
The survey covered 490 HR managers in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Ahmedabad. While, hiring prospects have taken a hit across most sectors, the mood remains upbeat among those into information technology and IT-enabled services, the survey said.
“Recession in the US and increasing interest rates in India have impacted the hiring sentiment across banking and financial services firms,” said Sampath Shetty, Vice President, TeamLease Services Pvt Ltd.
Support functions and sales jobs are most likely to be affected, he said. Officials at ICICI Bank and HDFC Bank, when contacted, declined to comment on their hiring plans for the current quarter.
Some leading telecom companies however, did not agree with the survey findings. “We have ambitious growth plans and in fact we will be hiring more,” said Rajeev Narayan, vice president, corporate affairs at Tata Teleservices Ltd.
A spokesperson at Bharti Airtel Ltd said: “Our outlook for the growth of the telecom sector has not changed and continues to remain positive.”