India’s Formal Hiring Declines 20% in October; Banking Sector Hit Hard

India’s formal employment market is experiencing a significant downturn, with job creation plummeting by 20% in October compared to the previous year. This figure also represents a 5.4% decrease from September 2023, marking the second consecutive month of decline. The data comes from a report by the global job platform Indeed, which highlights a troubling trend across multiple sectors.

The report reveals that nearly three-quarters of industries have faced a reduction in job postings over the past quarter. The banking and finance sector has been particularly hard hit, experiencing a sharp decline of 25.6%. Other sectors also reported losses, including legal at 22.4%, retail at 16.7%, and loading and stocking jobs at 15%.

Despite the overall downturn, certain sectors are bucking the trend by expanding their hiring efforts. Notably, roles in cleaning and sanitation have surged by 20%, while community and social services have grown by 17.4%. The healthcare sector is also showing resilience, with dental positions increasing by 13.1%, nursing roles up 11.2%, and food preparation and service jobs rising by 10.3%. Additionally, hiring in human resources has seen a modest increase of 2.3%.

Shifting Trends in Remote Work

The data from Indeed indicates that the job market is undergoing a transition, with formal employment growing more selectively. Remote job opportunities are playing a crucial role in this shift. In October, 9.1% of job postings mentioned “work from home” or “work remotely,” reflecting an increase of 7.6% year-on-year. The highest prevalence of remote roles is found in IT infrastructure, operations and support at 18.2%, followed by community and social service at 15.1%, and industrial engineering at 14%.

Callam Pickering, the Senior Economist for the Asia-Pacific region at Indeed, noted, “The Indian workforce is slowly transitioning towards more formal work arrangements. This means that job creation in the formal sector will surpass the overall employment growth nationwide.” He emphasized that the stronger job posting trends in India are noteworthy compared to other markets during both the post-pandemic job boom and the subsequent slowdown.

The rise in remote work opportunities reflects changing attitudes among employers regarding work-from-home arrangements. “These changes may also indicate employers’ efforts to attract a broader pool of candidates,” Pickering remarked. While there has been growth in remote roles within IT and installation/maintenance, some sectors, such as veterinary and community services, have experienced declines of 2.5% and 1.9% percentage points, respectively.

As the employment landscape evolves in India, the focus on selective growth alongside the rise of remote opportunities presents both challenges and prospects for job seekers and employers alike.