According to a new study, India Inc is upbeat about the business outlook for the January-March quarter but will be playing it safe when it comes to hiring of new staff and most job openings are likely to be at entry and junior levels in smaller cities.
The outlook of corporate India improved slightly in the contexts of business prospects during the quarter, according to a TeamLease employment outlook report for January-March, 2010.
“The past two quarters have shown impressive GDP growth of around 8.9 per cent despite inflationary pressures. So while inflation continues to be a cause of concern, the business sentiment among India Inc remains positive. This is also evident from the reasonably good Q3 numbers being reported by many companies,” TeamLease Services Vice-President Sangeeta Lala said.
“This will have a positive impact on the hiring outlook for the coming quarters, while the current quarter (Q4) remains more or less steady when compared to the previous quarter,” she said.
The survey also noted that companies are likely to increase their focus on Tier-II cities, which will have positive implications for the labour market. In this regard, the report indicates that the hiring scenario in Tier-II cities has improved by 2 per cent.
In contrast, there was just a 1 per cent increase in the hiring prospects in metro cities. In rural areas, the hiring sentiment has remained more or less stagnant, as per the survey.
“Interestingly, hiring initiatives are likely to accelerate in Tier-II cities, while metros and tier-III towns keep up the healthy sentiment of the previous quarter,” Lala added.
The business outlook improved, by 2 per cent to 73 per cent, during the quarter while the employment outlook moved up by 1 per cent to 69 per cent.