Manufacturing hiring surges 47% in Tier-II cities

The production and manufacturing sector saw a 47% YoY increase in hiring, driven by PLI and infrastructure policies, according to foundit. This growth was prominent in tier-II cities and related industries. The overall hiring index rose by 11%, with arts roles increasing and customer service jobs declining due to AI adoption.

The production and manufacturing sector experienced a significant 47% year-over-year surge in hiring, emerging as the leading industry for recruitment in tier-II cities. This growth is attributed to factors such as the Production Linked Incentive (PLI) scheme, infrastructure development, and policy interventions on imports and exports, according to the latest findings from talent platform foundit (formerly Monster APAC & ME) in its hiring trends for May 2024.

The foundit Insights Tracker also noted that this increased demand extends to related industries, such as home appliances and electrical components, which saw a 35% increase in hiring.

According to the tracker, the overall hiring index rose from 265 in May 2023 to 295 in May 2024. This 11% increase compared to the previous year indicates a substantial recovery in employment opportunities. It also highlighted that tier-II cities showed consistent growth in hiring trends compared to metropolitan areas, with Kochi, Coimbatore, and Jaipur emerging as key hiring locations.

Sekhar Garisa, CEO of foundit, commented on the growth in hiring, emphasizing its significance for India’s manufacturing sector. “This surge in hiring reflects increasing demand for skilled labor and indicates a vibrant job market within the manufacturing industry. It suggests that companies are expanding their operations and investing in manpower to meet growing production needs. Furthermore, such significant growth in hiring could lead to a boost in economic activity, increased industrial output, and contribute to overall economic development,” he stated.

Garisa also highlighted that India’s goal of becoming a developed country by 2047 heavily relies on the growth and modernization of its manufacturing and production sectors. “Manufacturing has the capacity to generate millions of jobs across diverse skill sets, ranging from factory workers to engineers and managers. According to the tracker, the sector has experienced a remarkable 38% growth in white-collar jobs over the past six months, demonstrating its potential as a major source of employment. This is particularly crucial for India, given its sizable and expanding workforce. By investing in manufacturing, India can absorb its growing labor force and offer significant avenues for gainful employment.”

The findings also revealed that tier-II cities are experiencing stronger growth rates in sectors like production and manufacturing (29%), IT-software and services (17%), real estate (8%), and education (8%), with recruiters seeking diverse talent with specialized skill sets.

In metro cities, Kolkata and Delhi/NCR stood out as leading hiring hubs on a year-over-year basis. While smaller cities have outperformed metros in annual growth, the latter have seen a significant upswing in hiring in recent months, the tracker added.

Newer trends observed included a month-on-month surge in demand for arts/creative professionals (4%), especially for roles such as graphic designers and animators, driven by the growing popularity of digital and social media marketing. Conversely, customer service roles saw a downward trend (-25%) due to the adoption of AI-based chatbots and virtual assistants.