Gig jobs rise as permanent roles stay elusive
bengaluru/mumbai, Feb. 9 -- Recruitment companies are bracing for a subdued hiring season over the summer months, which typically mark the second-largest hiring period after the festive season in India.
While mandates are coming in from e-commerce and logistics players, banking, consumer durables, and electronics companies with physical stores are largely limiting hiring to replacements.
"The mood is sombre. There has been no change in the Budget that would lead to more money in the hands of consumers, which directly impacts consumption patterns. However, online platforms are expected to perform marginally better than last year," said Aditya Narayan Mishra, managing director (MD) and chief executive officer (CEO) of talent solutions firm CIEL HR.
In India, the festive season-typically from September to December-is considered the peak hiring period, as companies across industries push product sales amid gifting and the coinciding wedding season. This is followed by a lull, with recruitment picking up again in February and March, as firms stock up on air-conditioners, refrigerators, coolers, and beverages ahead of the April-June summer season.
Companies usually hire gig and temporary workers who can stay on through the summer months. Last year, hiring in the consumer, banking, and logistics sectors rose 15-20% in tier-2 and tier-3 cities. This year, however, could be a mixed bag, with online sales gaining momentum while store footfalls remain uneven.
Interestingly, the focus is once again on tier-2 and 3 cities to drive demand.
"Footfall has shown some improvement, largely driven by tier-3 and tier-4 cities, while tier-1 and tier-2 markets are still in recovery mode," said Sandeep Abhange, equity research analyst (consumer and staples) at LKP Securities. He added that urban demand remains relatively robust, with tier-2 and 3 cities likely to deliver mid- to high-single-digit growth, while tier-1 and 2 cities should see gradual improvement over the summer.
The analyst estimates a sequential recovery in same-store sales growth (SSSG) beginning this quarter, though year-on-year growth is likely to remain "subdued." He said the double-digit growth seen in fiscal year 2023 (FY23) and FY24 is "unlikely to repeat."
For recruitment firms, demand typically picks up from February onwards, as client companies relocate employees across states and grapple with high attrition-often around 25-30% per quarter-requiring the hiring of replacement staff.
Kartik Narayan, CEO of Apna.Co, is more optimistic about an uptick in temporary and gig hiring in the coming months. "With the new labour codes coming in, I don't think private investment will significantly increase permanent jobs in the near term. Consumption hasn't picked up enough for that. Over the next six months, we are likely to see more contractual hiring rather than growth in permanent roles," he said. Apna Group is a Bengaluru-based, AI-driven recruitment and professional networking platform.
Queries emailed to consumer-focused platform companies Swiggy, Zepto, Zomato, Amazon and BigBasket went unanswered....
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