Hiring drops in IT, healthcare and education as companies fear winter funding


According to the latest Monster Employment Index report for October, online hiring activity slowed by at least 6% in the month compared to the year-ago period. Month-over-month, overall job demand also fell 5% from data recorded in September.

Hiring activity in various industry segments, including information technology and healthcare – two of the nation’s largest employers, slowed in October as several companies in those sectors feared a funding winter impending global recession and economic contraction. The other sectors, which saw a similar decline in job demand during the month, were pharmaceuticals and education.

According to the latest Monster Employment Index report for October, online hiring activity slowed by at least 6% in the month compared to the year-ago period. Month-over-month, overall job demand also fell 5% from data recorded in September.

Winter financing refers to a period of capital inflow market correction that reduces the likelihood of startups securing higher valuations.

“This (drop in demand) can be attributed to changing patterns in the startup ecosystem, winter funding and fears of a coming recession,” recruitment platform Monster India said, by publishing the report.

However, hiring for roles in the automation, banking, financial services and insurance (BFSI) and telecommunications industries have seen an increase following increased adoption of the latest technologies. Artificial intelligence and blockchain are transforming the BFSI sector while the emergence of 5G is transforming the growth of telecommunications, he noted.
However, the demand in the telecom sector, which is driven by skills such as Devops, Full stack, React Native, Cloud, Open Stack, Edge Computing, Robotic Process Automation (RPA), Juniper, Big Data and Python, which represent 72 percent of total works in the sector, has increased, he said.
Sekhar Garisa, CEO, Monster.coma Quess company, said, “Technology is no longer a differentiator in organizations. It is now imperative for every industry to digitize quickly and move forward. increased investment and job creation.

The Monster report also attributes the continued success of India’s BFSI sector to factors such as government involvement, access to technology and an increase in investor capital.

However, demand for jobs in healthcare and IT fields has plummeted, according to the report. In fact, hiring at India’s top five tech companies fell by more than 40% between July and September, according to their quarterly financial results.

Education jobs are also in decline following major upheavals in the IT industry, haunted by cost cuts and pressure to post profits, according to Monster’s report. Additionally, the healthcare sector has been subject to a whirlwind of change since the pandemic.

The drop in online hiring activity for healthcare positions could also be attributed to the growing healthcare technology innovations in the sector as well as lower demand for pharmaceutical professionals, a- he added.

Several reports have recently pointed to a slowdown in hiring. The monthly Naukri Jobspeak Index also indicates that recruitment has slowed due to the festivities and remained stable compared to last year. At 2,455, the index is at its lowest level in 2022. Meanwhile, the latest data from the Center for Indian Economic Monitoring (CMIE) showed an increase in India’s unemployment rate in October to 7, 8% against 6.4% in September.

However, the Monster Jobs Index report pointed out that as companies ramp up internal initiatives to facilitate growth and government interventions in multiple sectors, hiring projections for the coming months are expected to accelerate.

Garisa said it is important for the workforce to upskill and re-skill at the individual and organizational level.

The report adds that while hiring slowed in India’s metros, it stabilized in cities like Coimbatore and Ahmedabad on a yearly basis, although it was down from last month.


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