A drop in the hirings in not just manufacturing, engineering and information technology sectors but even the retail and fast moving consumer goods (FMCG) sectors is being witnessed in the city in the current quarter. This drop is as acute as in cities like Bangalore and Delhi.
A report on the employment and business outlook, conducted by staffing solution company, Team Lease, points out the dismal sentiment to the low investments in the ongoing quarter.
According to the report, the employment outlook in Pune has come down to 70 percentage points in the current quarter in comparison to 78 for July-September period while Delhi and Bangalore have seen the highest fall of 9 points from 70 and 88 percentage points to 61 and 79 percentage points respectively. Unlike Ahmedabad and Chennai, where the fall has been less acute with cities witnessing the employment sentiment of 67 and 63 in the current quarter as against 72 and 70 of the previous quarter, the drop has been less sharp in Mumbai where the employment sentiment has come down now to 67 from the previous quarter percentage of 72.
Convener of Human Resource -industrial relations (HR-IR) panel of Confederation of Indian Industry (CII), Bobby Kuriakose, said the drop in employment in the retail sector is due to the delay in foreign direct investment. "The delay in FDI is a growth dampener," he said.
The report notes that the stable atmosphere of employment and business outlook between January to September doesn't continue in the current quarter.
In this quarter, there is a drop in the net employment outlook by 3 percentage points from 74 per cent between July to September this year. Besides the drop in employment outlook in IT by 7 percentage points to 80 from 87 points between July to September quarter, there is a drop in manufacturing and engineering sector too by 2 percentage points from 55 for the previous quarter. The retail and FMCG sector has also witnessed a drop of 2 points from 72, telecom by 6 percentage points from 87, of the previous quarter as well as the drop in healthcare and Pharma sector by 3 percentage points from 70 between July-September quarter.
Vice-president of Mahratta Chamber of Commerce Industries and Agriculture (MCCIA), Ajay Mehta, said, the high interest rate and inflation has hit the investments affecting the hiring. "The investment climate is negative due to continuous interest rate hike," he said.
Regarding the net business outlook, the Team lease report notes the lowest in IT followed by retail and manufacturing sectors. The business outlook has dropped to 82 from 90 during July-September quarter for IT, from 85 to 79 in retail sector, and from 64 to 58 in manufacturing and engineering sector.
Spokesperson of software exporters association of Pune (SEAP), Abhijeet Atre, said the negative sentiment in the IT industry was due to the volatility in market. He said uncertainty looms in the market regarding fresh projects.
Sangeeta Lala, senior Vice-president, Team Lease, said the overall response by corporate heads is negative sentiment in the current quarter in major sectors.