Online recruitment activities in India grow by 11 percent, here's why BFSI is leading the chart

Online recruitment activities for January 2017 continued to exceed the corresponding period a year-ago at the same rate as in December 2016; up by 11 percent, according to the Monster Employment Index.

Banking/ Financial Services, Insurance led the long-term chart in January with a 54 percent growth as against 40 percent in December 2016. The sector is undergoing a massive change fueled by an increased focus on better customer services and the movement towards providing digital services owing to demonetisation.

Motivated by the digitization in the sector, in January, Education ranked second among industries led the charts at 39 percent despite moderation in the pace of growth. In December 2016, the sector led the charts with 52 percent growth.

City-wise data shows that Coimbatore moved up the growth ladder in January to 20 percent from a 14 percent y-o-y growth in December 2016. This was closely followed by Ahmedabad (up 17 percent) and Kolkata (up 15 percent) in January.

The e-recruitment activity in Bangalore continued to slide in January. The growth rate eased from 10 percent in December 2016 to 5 percent in January 2017. This is the first single-digit growth and also the lowest recorded since March 2015. Metros exhibited a relatively stable annual growth trend with Delhi-NCR (up 14 percent); Mumbai (up 10 percent); and Chennai (up three percent) between December 2016 and January 2017.

Commenting on the trends, Sanjay Modi, Managing Director for APAC & Middle-East region at Monster.com, said, “The hiring sentiment is undergoing a lot of change. Hiring activity for the last two months was primarily driven by industries such as Banking/ Financial Services, Insurance (up 54 percent), and Education (up 39 percent). Demonetisation has disrupted the job market impacting sectors such as Real Estate, Retail, E-commerce, etc. However, this focus on digitization is expected to boost job creation in the economy.”

He further added, “The announcements in the Union budget focused on revitalizing the economy on key factors such as ease of doing business, lower fiscal deficit targets, lowering direct tax incidences, encouraging honesty by capping cash transactions either in the form of expanses or donations. Tax rate reduction, encouraging FDI, measures for education, skilling and employment of youth are constructive measures for economic growth, expenditure for farmers, rural sector, affordable housing and infrastructure will boost growth and employment. The allocation to establish 100 India International Skill centers across the country, reiterates the government’s focus on skill training to create employment avenues. Its plan to launch Sankalp, a programme for skill acquisition, knowledge and awareness for livelihood, could help the market battle the concern of automation eating up human jobs. With the effective implementation of these pro-growth initiatives, the overall employment scenario is likely to get a fillip.”