Hiring for Tech roles at an all-time high in May 21, supersedes pre-COVID levels; Naukri JobSpeak
National, 03 June 2021: Indian organizations are using technology to respond to the business challenges put forth by the pandemic. The pandemic has not only accelerated the pace of digital transformation across sectors but also created a need for rapid and scaled deployment. Given this wave of hyper-digitization that has swept the country, the IT-Software sector recorded a robust +14% growth in hiring in May’21 Vs Apr’21 as per the latest Naukri JobSpeak report. Interestingly, tech hiring is at an all-time high, up by 39% in May '21 Vs May’19, which was the pre-COVID era.
Naukri JobSpeak Index (M-O-M)
At an overall hiring level, Naukri JobSpeak stabilized and turned flat (-1%) in May '21, at 2,047 versus April’21.
Hiring activity in the Education/Teaching sector grew by +7% sequentially in May’21 after posting a continuous decline over the past few months. The hiring in the sector is led by marquee EdTech startups on Naukri.com including Byjus, Vedantu, Toppr and Unacademy to name a few. The shutdown of hotels, restaurants and non-essential offices led to a sequential decline in hiring in sectors such as Hospitality (-41%) and Retail (-20%) in May’21. Sectors such as Banking/Finance (-15%), FMCG (-13%) and BPO/ITES (-10%) remained impacted in hiring activity in May '21 Vs Apr’21.
Major IT Hubs like Pune (+12%), Bangalore (+9%) and Hyderabad (+4%) saw an uptick in hiring activity in May '21 Vs Apri’21 led by tech talent demand. With Maharashtra successfully containing the pandemic, hiring activity grew by +5% sequentially in Mumbai. On the other hand, hiring in Delhi/NCR remained impacted and declined by 11% in May’21 Vs Apr’21. As the pandemic impacts smaller cities in the second wave, tier-2 cities remain impacted in hiring including Jaipur (-19%), Vadodara (-9%) and Coimbatore (-5%).
Commenting on the report, Pawan Goyal, Chief Business Officer, Naukri.com said, “It is encouraging to see a much lesser impact of the second wave of the pandemic on the job economy versus last year. Even though the hiring activity declined by 15% in Apr’21 over Mar’21, we see hiring turning flat in May’21, signaling resilience and recovery. With the year 2021 seeing a strong wave of hyper-digitization, the IT sector continues to drive hiring, recording a robust +14% sequential growth in May '21. In fact, hiring for tech roles is at an all-time high versus pre-COVID levels; growing at 39% in May '21 over May’19.”
Hiring activity for professionals with 8-12 years’ experience (+4%) as well as more than 16 years’ experience (+4%) grew sequentially in May’21. This indicates that organizations prefer experienced professionals to steer them through these turbulent times. Adversely, the 0-3 years’ experience band is seeing a consistent decline in sequential hiring over the past few months with the hiring declining by 7% for the segment in May '21.
The Naukri JobSpeak index reports a +14% increase in demand for tech professionals in May’21 Vs Apr’21 as the majority of tech giants announced bulk-hiring plans for 2021. IT roles have seen aggressive hiring on Naukri.com from companies such as Adobe, IBM, Accenture, Oracle, Udaan, Flipkart, Meesho, Motorola, SAP and Nike India to name a few.
The demand for professionals in HR/Admin (-4%), ITES/BPO (-8%) and Content/Journalism (-8%) domains was also less impacted in May '21 sequentially. Amidst the lockdown restrictions across the country, sequential hiring for Sales/BD (-20%), Production/Quality (-22%) and Purchase/Logistics (-14%) roles saw a decline in May '21.
Y-O-Y Hiring Deep-dive | May’21 Vs May’20
The hiring activity grew by +125% in May’21 as compared to May’20. Given the strict nationwide lockdown last year in May '20 and the job market being severely impacted, the Y-O-Y comparison shows growth in hiring activity.
While most sectors still have to recover to pre-pandemic levels, Y-O-Y hiring in the IT-Software sector grew by +200% in May '21 and has even surpassed its growth in 2019. Other sectors such as Retail (+143%), Auto/Ancillary (+108%) and Education/ Teaching (+105%) that were highly impacted last year saw a good Y-O-Y recovery in May’21. The Pharma/Biotech (+43%) sector, which remained afloat during the first wave of the pandemic saw proportionate Y-O-Y growth in May '21.
The top six metros witnessed +164% growth in hiring in May’21 Vs May’20. Within metros, Y-O-Y hiring was led by IT hubs including Pune (+217%), Hyderabad (+207%) and Bangalore (+187%). The hiring activity in Mumbai (+112%) and Delhi/NCR (+108%) grew relatively lesser during the same period owing to the pandemic impact. Smaller cities saw slower overall growth of +91% as compared to metros with Ahmedabad (+171%) and Chandigarh (+108%) leading hiring in May '21 Vs May’20.
The demand for professionals in the IT-Software (+207%), HR/Admin (+195%) and Banking/Insurance (+151%) domains saw significantly high demand in May’21, whereas Marketing (+64%) and Sales/BD (+47%) professionals weren’t in as much demand as per the Y-O-Y hiring trends. Hiring across experience bands saw an average increase of +114% in May '21 Vs May’20 with the 8-12 years’ experience band showing maximum growth.
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. 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 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.