Chennai: First half of FY20 will see a net addition of 11.5 lakh jobs across sectors. However, H1 will see a slower growth of three per cent as the elections have affected the hiring sentiments.
In H1 last year, Teamlease Services had predicted a 4 per cent rise in net employment outlook, which has now softened to 3 per cent. However, the outlook is significantly better than H1 FY17 when it was 6 per cent down due to the continuing impact of demonetization.
"Companies are in a wait and watch mode due to the elections. Though the growth is slower, it is encouraging,' said Rituparna Chakraborty, Co-Founder and Executive Vice President of TeamLease Services.
Teamlease projects that for April - September FY 20, about 57 per cent of the industries will see an increase in their net employment outlook. Travel and Hospitality and BPO/ITeS with a 4 per cent rise are the leading industries that will lead the optimism. Power and energy as well as logistics too are poised for growth." In fact, around 11.5 lakh new jobs will be created in the formal sector. Retail, logistics, educational services and fast moving consumer goods and durables alone will add around 1.66 lakh, 1.49 lakh, 1.17 lakh and 1.10 lakh respectively,' she said.
However, sectors like e-commerce and tech startups will witness a 5 per cent drop in hiring outlook. "E-commerce companies are rethinking about their hiring plans post FDI regulations. Telecom has remained a dampener for some time and it is an off-season for agriculture and agro-chemicals,' she added.
Agriculture and Agrochemicals, Educational Services, FMCG and durables, Financial Services, and Retail are also likely to see increase in attrition. On the other hand, construction and real estate, IT, KPO, telecommunication and travel and hospitality can expect drop in attrition.