Indian Startups Cut Back on Hiring: What Does This Mean for Jobseekers?

What Does This Mean for Jobseekers?

Don’t despair if hiring has slowed down in your industry—there are still plenty of things you can do to keep your job search going!

The Indian startup industry has been on a wild ride for the last few years, with layoffs and hiring freezes blanketing the tech sector. A CIEL HR Services report shows a 44% decrease in new employment during October to December 2022 compared to January to March. This comes on the back of reduced capital availability, dubbed the “funding winter”, which saw ‌total funding fall from US$37.2 billion in 2021 to US$24.7 billion as of November 2022. With more economic uncertainty posed for 2023, this trend might persist for startups. 

These developments have transformed recruitment patterns in the past year. To better understand the implications for jobseekers, let’s take a deeper dive into the current state of the Indian startup environment.

Why are startups cutting back on hiring?

According to the ManpowerGroup Employment Outlook Survey, very few firms intend to hire in comparison to the same period last year (January – March 2022) and the prior quarter. Of organizations polled, only 48% aimed to hire more employees, 16% expected to cut headcount and 34% had no plans to modify their recruiting policies. Overall, this implies a net employment projection of 32%, which is 17% lower than the same period last year and 22% lower than the preceding quarter. In addition, 33% of CEOs have initiated a hiring freeze, either temporarily or permanently halting the creation of new positions. 

Sandeep Gulati, Managing Director of ManpowerGroup India, attributes this largely to the recession and global slowdown that particularly affected the IT industry during the last quarter. He added that until corporations and educational institutions join forces in addressing the talent gap, employment growth will remain at single-digit figures.

How does a slowdown in hiring impact jobseekers?

Finding a job can be difficult, especially for those who are unemployed or underemployed. This worry has led to feelings of anxiety about the future and whether people will be able to keep their current jobs or if they should look for new opportunities. With over 6 out of 10 employees believing that the layoffs will affect them, many are not as motivated and committed to their current jobs. Nearly 57% of employees are not enthusiastic about their current job, and more than half are preparing for new opportunities by acquiring new skills or improving their existing ones. 

In addition, there’s been an uptick in job-hopping, which can be advantageous for employers, as they have access to a wider pool of talent. However, it may also cause disruption for businesses by having to educate new workers constantly. This situation can also make it harder for companies to retain talented individuals. 

While the situation is challenging, there are ways to adapt and thrive in this changing job market.

What should jobseekers do?

The hiring slowdown has been a tough pill to swallow for jobseekers, resulting in historically low levels of job satisfaction. Yet there is still cause for optimism. Employers anticipate an increase of up to 20% in their hiring this year. Industries such as e-commerce, logistics, banking, financial services and insurance (BFSI) and real estate are experiencing steady growth and hiring activity, even during an economically sluggish climate with rising prices. Additionally, talent demand is anticipated to rise in the education and healthcare sectors. 

Aspiring jobseekers should focus on sectors with growing demand for talent. To make the best out of a slower job market, start by evaluating your skills and experience and consider. any areas you need to brush up on or new skills to acquire. Now is the perfect time to do some self-improvement and make yourself an even more attractive candidate when the job market picks back up. 

Next, update your resume and LinkedIn profile to fit your desired positions and emphasize your key accomplishments. 

Third, network, network, network! Get in touch with old colleagues and friends, attend industry events or join online groups related to your desired field. The more connections you have, the better your chances of hearing about that hidden gem of a job opening. 

Finally, maintain a positive attitude and outlook. Though a hiring slowdown can be frustrating, remember that it’s a temporary situation. Keep going after your dream job and eventually, and you’ll land it!

The bottom line

The challenging economic climate has caused jobseekers to adopt a creative and resourceful approach, with more networking and honing of existing talents and skills, whilst remaining positive despite setbacks. This is transforming them into highly desirable candidates who can bring added value to future employers. As the economy improves, businesses will have access to a pool of skilled and motivated employees who can achieve their goals. Although it’s not an easy period for those searching for employment opportunities, the long-term outcomes will outweigh any temporary difficulties.

Also read:

Header image courtesy of Pexels.com

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Meet the World's First AI Interns Aiko and Aiden

Meet the World’s First AI Interns Aiko and Aiden: A Dive in AI and the Future of Work

Artificial intelligence (AI) has revolutionized the way industries operate, enabling machines to carry out tasks that were once the sole domain of human decision-making. With its ability to automate mundane and repetitive work, AI has quickly become an indispensable tool in various industries, including healthcare, finance, manufacturing and transportation.

How Does Rihanna Promote Fenty Beauty

How Does Rihanna Promote Fenty Beauty—and Some Hot Tips for Your Brand

Rihanna’s Superbowl performance left the social media world quivering—for both good and bad reasons. While some thought the pop star did the bare minimum, others resorted to recreating her dance moves, celebrating her pregnancy announcement and lauding her for her genius marketing move.

From-Budget-to-High-End

From Budget to High-End: Our Top Picks for Gaming Computers 2023

Gaming has evolved from a mere hobby into a full-blown lifestyle for countless gamers worldwide. From casual gamers to professional players, everyone understands the importance of a high-performance gaming computer. These computers come with specialized components that are optimized to deliver the ultimate gaming experience.

The Most Anticipated Foldable Phones of 2023 You Won't Want to Miss

The Most Anticipated Foldable Phones of 2023 You Won’t Want to Miss

Innovation in the smartphone industry is the key to staying ahead of the curve, and foldable phones are leading the way. These devices offer innovative designs that provide larger screens in a compact form factor, generating new excitement and anticipation among tech enthusiasts.

How to Get the Most Out of Reddit Marketing

How to Get the Most Out of Reddit Marketing: A Guide for Businesses and Bloggers

In recent years, Reddit has become one of the most popular social media platforms on the internet. With over 430 million users, Reddit provides businesses and bloggers with a unique opportunity to reach a vast and engaged audience. However, many businesses and bloggers struggle to effectively leverage Reddit for marketing purposes.

What Happened and What It Means for Startups and the Crypto Market

3 Successive Bank Closures: What Happened and What It Means for Startups and the Crypto Market

The recent spate of bank failures in the U.S. has sent shockwaves through the financial world, with experts warning of a repeat of the 2008 crisis. In just one week in March, we saw the failure of two banks—Silvergate Bank, which announced plans for liquidation, and Silicon Valley Bank (SVB), which struggled to cut losses on bond investments because of inflationary conditions.