With the emergence of next-gen technologies, India is well on its way to transitioning into a digital-first economy. Undoubtedly, new tech brings with it demand for niche skills to support these transformation agendas, which will drive hiring in 2023.
From the Great Resignation to evolving work models, the Indian job market has witnessed a whirlwind of changes amidst unpredictable macroeconomic developments. Encouraged by the shifting power dynamic between the employee and employer, 2023 will see recruiters continuing the focus on optimising hiring processes, addressing the demand-supply talent gap, and employee engagement and retention activities.
As per the foundit Insights Tracker (fit), the first half of 2022 saw an 8% growth in hiring, followed by a 3 per cent de-growth in the second half, owing to the global economic scenario. Despite this drop, hiring in several sectors, such as BFSI, Retail, and Automotive, is expected to grow by 20% in the coming year.
The fast-paced adoption of AI, cloud, cybersecurity, blockchain, quantum computing, and process automation by the BFSI sector has resulted in a massive recruitment momentum in the industry. In fact, in India, the sector is expected to employ over a million professionals with skillsets relevant to these areas by 2023. The emergence of neo-banks, embedded finance and metaverse banking has further added to this growth spike.
When it comes to retail, the new era of social commerce and quick commerce is leading to an increased focus on enhancing customer experience through tech-enabled and hyper-personalised offerings. This trend will undoubtedly create new roles in the sector.
Moreover, the reliance on Big Data to unearth insights that are crucial for customised experiences and identifying measurable business growth metrics is on the rise. This will fuel the adoption of retail tech and analytics and lead to increased demand for data scientists and data engineers.
The growth in the automotive sector has been tremendous and is set to hit a record high with the growing adoption of EVs and smart mobility solutions. With the shortage of semiconductor chips dampening overall production globally, companies are looking at setting up factories in India to support the sector which will create numerous ancillary jobs. Additionally, as connected, and sustainable mobility gains massive popularity, demand for skilled talent and hiring for blue-collar roles in the automotive aftermarket sector will continue to register consistent growth.
The Indian IT sector, too, has had its share of ups and downs over the past few years, with a prolonged recovery period ahead. As the impact of the ongoing global recession takes time to taper, hiring in the first half of 2023 is expected to be muted. However, given the anticipated increase in cost-efficiency-driven outsourcing by global companies, the industry is expected to pick up the pace in hiring by the second half of next year.
This growing demand for candidates will also be fuelled by the expansive adoption of automation by Indian companies and the setting up of GCCs in the country. Interestingly, despite the tepid growth in recruitment, certain niche roles in IT have been and will continue to be in demand. Also, as the nation gears up to embrace 5G, hiring for telecom professionals will spill over into the coming year.
No doubt, hyper-automation will drive business growth in 2023, and the need for expertise in AI/ML, cloud, data analytics, and digital optimisation will drive the demand for a new breed of digital native workers like never before. In fact, the growing use of digital will drive demand for digital marketers, influencer marketing professionals and related roles as well. While the popularity of HR tech and workforce management will require more SAAS solutions leading to higher demand for professionals in the field.
In 2023, even as newer jobs and roles emerge, organisations will continue to place emphasis on upskilling existing employees and finding the right talent for roles in emerging tech. Job creation and thrust towards increased formalisation will continue to be a priority in India. Amidst this, ensuring minimal displacement of the current workforce will also be a critical task that private and public sector employers will address.