foundit Insights Tracker: Startups Drive Employment Growth

foundit (formerly Monster APAC & ME), India’s leading talent platform, published the foundit Insights Tracker (fit), presenting the latest findings on hiring trends for April 2024.   

According to the tracker, the overall hiring index shifted from 276 in March 2024 to 300 in April 2024. Also, compared to the previous year, there was a 9% increase in hiring, indicating a recovery in employment opportunities. The tracker highlighted a 37% increase in the number of startups since last year. In recent times, startups have also played a major role in increasing employment opportunities for the youth, with a 14% increase in the total number of jobs provided by startups.    

Offering a hiring overview for April 2024, Sekhar Garisa, CEO, foundit (previously Monster APAC & ME), a Quess company, said, “Startups are increasingly leaning towards recruiting fresh talent, with over half of their job postings targeted at newcomers. In this market, young professionals should differentiate themselves by picking up relevant skills and not solely rely on their professional degrees. Additionally, the Production and Manufacturing sector has witnessed a remarkable 31% year-on-year surge in hiring. This growth will go a long way in contributing to realising India's vision to emerge as a global manufacturing powerhouse."

Demand for freshers leads in startup hiring, IT services industry paves job growth while Internet, BFSI/Fintech, and Education industries face headwinds 

Startups in the IT (Information Technology) services sector noticed a steady increase in jobs, from 20% to 23% between April 2023 and April 2024. In contrast, startups in the Internet, BFSI/Fintech, and Media & Entertainment industries witnessed a slight decline in hiring from April 2023 to April 2024.  Meanwhile, startups in the Education/E-learning/EdTech industries reported stable growth in April, suggesting a period of stability within the industry. 

According to the tracker, startups are looking to hire freshers (with 0 to 3 years of experience), for 53% of all the jobs available. In terms of the top job roles, sales position vacancies have rapidly increased over the past year, with an increase from 9% in April 2023 to 23% in April 2024. Product-related job roles have also shown signs of improvement, transitioning from 8% in April 2023 to 9% in April 2024. Job roles that have shown a decline in demand include IT, Consulting, and Marketing. 

In terms of cities, metro regions of Bengaluru, Delhi-NCR, and Mumbai lead the way as startup hubs. However, India’s startup ecosystem is rapidly expanding beyond these metros, with non-metro locations increasingly emerging as entrepreneurial hubs. The data also revealed that a majority of the startups no longer offer remote work options, having transitioned back to working from office. This shift is highlighted by a decline in remote-work opportunities from 8% in April 2023 to 3% in April 2024.  

India's Production and Manufacturing Sector Experiences Hiring Revival  

Production and Manufacturing sector witnessed a remarkable 31% year-on-year surge in hiring, signaling significant growth in the sector, which also aligns with India's broader vision to emerge as a global manufacturing powerhouse specifically targeting Automobile, Chemical, Pharmaceutical, and Food Processing industries. This surge in hiring emphasizes the need to accelerate domestic production and boost exports by companies.  

Significant growth in hiring in the Home Appliances industry  

The other sector that has performed well is the home appliances industry in India, which saw a remarkable 27% year-on-year growth in hiring. As April began, the IMD predicted heatwaves and above-normal temperatures across multiple states in India. This led to a surge in demand for home appliances. In response, the sector swiftly adjusted its inventory, distribution, and hiring strategies to meet the rising consumer demand.  

The Healthcare industry has shown a revival from the pandemic, witnessing a 10% year-on-year increase and a 6% monthly increase in hiring. Meanwhile, sectors such as Agro-based industries (-22%), Shipping/Marine (-19%), FMCG (-6%), Printing/Packaging (-7%) saw a yearly downtrend in hiring. Retail (18%), Automotive (15%), Real Estate (11%), IT (9%), and Oil/Gas/Power (14%) industries showcased moderate growth in hiring.   

Summer season travel plans uplift hospitality and travel jobs 

With schools shut for summer breaks, the hospitality sector is gearing up to cater to the growing influx of tourists. In keeping with that, jobs in these industries saw a 23% year-on-year increase in online hiring activity. The rise in hiring for hospitality and travel jobs comes at a time when people pick offbeat national and international locations for holidays. 

Other job roles that have showcased positive growth in hiring include Marketing & Communications, where the tracker indicated a 12% year-on-year increase and a 6% monthly increase from March 2024 to April 2024. Despite the global headwinds and geopolitical tensions over the past year, the Indian economy has remained resilient with the continued adoption of new-age technologies. This rise underscores the industry’s increasing reliance on experts who can navigate the complex landscape of digital marketing and communication.  

The job roles that have shown a downward trend in hiring include Customer Service (-26%), Sales & Business Development (-12%), and Finance & Accounts (-7%). On a year-on-year basis, job roles with moderate to slight growth include Engineering/Production, Software, Hardware, Telecom, and HR & Admin, witnessing a 2% growth in hiring.     

Jaipur leads job growth in India’s Tier-2 cities; witnesses a remarkable 24% increase in hiring 

Companies across India are seeking to expand their workforce to Tier-2 and Tier-3 cities, given the massive talent available in smaller cities. Jaipur leads the growth metrics with a whopping 24% yearly increase in hiring, followed by Kolkata seeing a 23% increase in hiring. Other cities that have showcased an optimistic trajectory include Delhi-NCR (12%), Coimbatore (12%), and Bangalore (12%).   

On a month-on-month basis, Baroda (12%) maintained a relatively stable and positive hiring environment, driven by growth of oil and gas, pharma, and auto sectors which have been actively recruiting from the region. Jaipur and Kolkata have performed well on a monthly basis as well, with a 10% and 9% growth in hiring respectively. Conversely, a few cities, such as Chandigarh, Mumbai, and Pune, faced a decline in hiring, dropping by 17%, 11%, and 3%, respectively.   

Hiring of senior and mid-senior level professionals witnesses a growth 

According to the tracker, demand for professionals with more than 15 years of experience saw an 11% year-on-year increase in hiring and requirement for mid-senior-level professionals with 7 to 10 years of experience witnessed a monthly growth of 7%. And, while startups are looking to hire freshers (0 to 3 years), the overall job market has only shown a slight yearly uptick of 1% in demand for freshers.