Feb 21 records strongest comeback for IT sector post COVID-19 with 33% M-O-M growth: Naukri JobSpeak
New Delhi, 04 March 2020: The rise of data, digitization and automation have caused an irreversible transformation in the way companies have adapted during the post pandemic era. The hiring in the IT-Software/Software services industry registered a record growth of +33% in Feb’21 Vs Jan’21 because of the increased adoption of digital technologies in India.
At an overall level, the Naukri JobSpeak Index for Feb’21, at 2,356, witnessed an uptick of +22% in hiring activity as compared to Jan’21 at 1,925. In addition, at a Y-O-Y level, the overall hiring remains flat at -2%.
With the country going back to normalcy, majority of the industries saw a positive sequential uptick in recruitment activities for the first time after the COVID-19 outbreak. The Telecom sector has registered a sequential jump of +24% in Feb’21. Other key sectors such as Medical/Healthcare (+28%), Education/Teaching (+25%), FMCG (+20%), and BFSI (+17%) too have shown growth in M-O-M hiring in Feb’21 while the Insurance sector saw a flat (-1%) hiring trend.
All six metros and key tier-2 cities witnessed positive hiring activities in Feb’21 Vs Jan’21. Hiring in metros showed double digit growth led by Bangalore (+31%), Hyderabad (+28%) and Pune (+24%). Tier-2 cities such as Ahmedabad (+31%) and Vadodara (+20%) also grew in Feb’21 sequentially.
With the opening of schools and colleges/universities, demand for professionals in Teaching/Education (+49%) has shot up in Feb’21 Vs Jan’21. Job roles in IT-Software (+31%), HR/Recruitment (+28%) and Travel/Ticketing (+27%) domains also see an increase in hiring sequentially. Hiring across experience bands saw an average increase of +23% with 8-12 years band being at the top of the table with 27% M-O-M increase in hiring activities.
Referring to the report, Pawan Goyal, Chief Business Officer, said, “Record growth in sequential hiring of +33% and a significant Y-O-Y growth of +12% in the IT sector indicates that the wave of digital transformation will make India the epicenter of the next tech boom. Around 88% IT recruiters have confirmed that new jobs will be created in the coming few months as per the latest Naukri Hiring Outlook survey, further confirming that the wave of digitization will spread rapidly.”
Hiring activity in the month of Feb’21 remained flat at (-2%) vs last year. Key industries such as IT-Software (+12%), Real Estate (+6%) and Medical/Healthcare (+3%) were least impacted at a Y-O-Y level while Hospitality/Travel continues to be the most impacted with 51% decline in hiring. Other industries such as Oil/Gas (-47%), Retail (-32%) and Auto/ Auto Ancillary (-22%) attributed to the overall decline in hiring trends.
Metro cities like Hyderabad (+8%), Bangalore (+9%), and Pune (+2%) saw a positive growth in Feb’21 versus last year. Within metros, Mumbai (-22%) remained the most impacted possibly due to recent spurt in COVID-19 cases and lockdown enforcement in few areas. Tier-2 cities like Coimbatore (-25%) and Kochi (-21%) saw a sharper decline in Feb’21 versus last year.
The demand for professionals in the Banking/Insurance domain grew remarkably by +44% in Feb’21. However, roles like Sales/BD (-23%) and Production/Maintenance (-25%) remained impacted at a Y-O-Y level. The hiring activity for professionals with over 8 years of experience saw a positive uptick of 11% on an average. With reduced campus hiring, the demand for professionals with 0-3 years’ experience was most impacted at -13% in Feb’21 Vs Feb’20.
The Naukri JobSpeak is a monthly Index that calculates and records hiring activity based on the job listings on Naukri.com website month on month. The objective of Naukri JobSpeak is to measure the hiring activity in various industries, cities, functional areas and experience levels. The data is compiled from the website wherein jobs posted by clients on Naukri.com are considered. Thus, the job speak index includes jobs that might be for replacement hiring. July 2008 is taken as the base with an index value of 1,000 and the subsequent monthly index is compared with the data for July 2008. The jobs analyzed for the monthly Index are qualified based on white-collar, urban, belonging to organized corporate sector jobs with the focus on service industries. The report shows hiring trends across industry sectors, geography, experience level, and functional areas. More than 76,000 clients use Naukri.com, leading to the high reliability of data. The report does not cover gig employment, hyperlocal hiring or campus placement. Over a long period of time, Naukri JobSpeak could be impacted by factors like internet penetration, Naukri market share, Naukri pricing and job listing drives."