Homeeducation News

Hiring shrinks in IT, healthcare, Education as companies fear funding winter

Hiring shrinks in IT, healthcare, Education as companies fear funding winter

Hiring shrinks in IT, healthcare, Education as companies fear funding winter
Read Time
4 Min(s) Read
Profile image

By Kanishka Sarkar  Nov 8, 2022 5:37:02 PM IST (Published)

According to the latest Monster Employment Index report for October, online hiring activity slowed down by at least 6 percent in the month as compared to the year-ago period. On a month on month basis, the overall job demand has also dropped 5 percent when compared to the data recorded in September. 

Hiring activity across various industry segments, including information technology and healthcare – two top employers in the country, slowed down in October as several companies in these sectors fear an imminent funding winter, global recession and contracting economy. The other sectors, which saw a similar drop in job demand in the month, were pharmaceuticals and education.  

Recommended Articles

View All

According to the latest Monster Employment Index report for October, online hiring activity slowed down by at least 6 percent in the month as compared to the year-ago period. On a month on month basis, the overall job demand has also dropped 5 percent when compared to the data recorded in September. 
Funding winter refers to a period of market correction in capital inflow which lowers the probability of startups getting higher valuations.  
“This (demand drop) can be attributed to changing patterns in the startup ecosystem, funding winter, and fears of an upcoming recession,” recruitment platform Monster India said, releasing the report. 
However, hiring for roles in the automation, banking, financial services and insurance (BFSI) and telecom sectors saw a rise following increased adoption of the latest technology. Artificial intelligence and blockchain are transforming the BFSI sector while the onset of 5G is transforming the growth of telecom, it noted.
However, the demand in the telecom sector, which is being driven for skills such as Devops, Full stack, React Native, Cloud, Open Stack, Edge Computing, Robotic Process Automation (RPA), Juniper, Big Data and Python, which account for 72 percent of the total jobs in the sector,  has increased, it said.
Sekhar Garisa, CEO, Monster.com, a Quess company said, "Technology is no longer an element of differentiation in organisations. It is now imperative for every industry to rapidly digitise and move forward. Sectors such as BFSI and telecom which have adopted new-age tech are now reaping rewards with increased investments and job creation.”
The Monster report also attributes the sustained success of the Indian BFSI sector to factors including government involvement, access to technologies, and a surge in investor capital.
However, job demand in healthcare and IT spaces saw a dip, according to the report. In fact, hiring at India’s five top tech companies has slipped over 40 percent in the July to September period, according to their quarterly financial results.
Jobs in education are also on the decline following major upheavals in the ed-tech industry which is haunted by cost cuts and pressure to show profits, Monster report said. Also, the healthcare industry has been subject to a whirlwind of changes since the pandemic.
The drop in online hiring activity for healthcare roles could also be attributed to growing health-tech innovations in the sector as well as the drop in demand for professionals in the pharmaceuticals sector, it added.
Multiple reports have recently pointed to a hiring slowdown. The monthly Naukri Jobspeak index too said recruitment slowed owing to festivities and stayed flat compared to the last year. At 2,455, the index is at its lowest level in 2022. Meanwhile, the latest Centre for Monitoring Indian Economy (CMIE) data showed a rise in India’s unemployment rate in October to 7.8 percent from 6.4 percent in September.
However, the Monster Employment Index report pointed out that as companies are ramping up internal initiatives to facilitate growth and government interventions in several sectors, hiring projections for the coming months are expected to pick up.
Garisa said that it is important that the workforce upskill and reskill themselves on an individual and organisational level.
The report added that while hiring has slowed down in India’s metros, it has stabilised in cities like Coimbatore and Ahmedabad on an annual basis even as it dipped compared to last month.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!