CHENNAI: Domestic structural changes because of demonetisation and GST, coupled with an uncertain global scenario due to H-1B visa issues, has turned the job market tepid.Getting employment this year appears tougher than in previous years as industrial growth is yet to gain traction. The pace of job growth this year could be flat or a moderate 5-7 per cent -lower than 2016’s 12-15 per cent.
While retail, hospitality and fintech show a small increase in hiring, a major reason for the reduction in job growth forecast is the IT layoffs and slowdown in that sector. Data from Kelly’s Services shows a 15 per cent increase in hospitality , 8 per cent increase in retail and an 18 per cent reduction in IT jobs in 2017. “Going by early trends, increased hiring in other sectors, including retail, hospitality and fintech result in 5 per cent growth on an average, which is lower than 7-8 per cent that we saw in 2016,” said Thammaiah BN., MD, Kelly Services.While PeopleStrong’s hiring intent report indicates 7-10 per cent growth in jobs this year, it showed 25 per cent and a 12-15 per cent growth rates in hiring in 2015 and 2016 respectively . The report also sa ys that the growth rate would be lower than last year in the BFSI, internet businesses, IT services and hospitality sectors.