The Naukri Job Speak Index for May-10 at 913 is 29% above the May’09 levels

Naukri

The first four months of 2010 has brought back the much desired exuberance in the environment as the Naukri job index has been very optimistic and has been consistently moving in a positive direction. A year on year comparison of the index shows all major cities, industries and functional areas moving in a positive direction indicating that the hiring activity has moved up across all sectors and is back to the pre –down turn levels. Although we see that the May-10 index has dipped by 10% over the Apr-10 index, the three month moving index indicates a steadier hiring scenario. On an overall level, the prevailing business sentiment of the Indian economy is also very positive as the fiscal year 2009-2010 ended with an impressive GDP growth of 7.4% as compared to 6.7% in the previous fiscal.

Sumeet Singh, National Head, Marketing and Communication, Info Edge said “The appraisal season generally puts a halt to the hiring activity for most companies which is why we see the dip in the May index. Although we still feel that the level of hiring is not such that could be considered as a job boom, the medium term outlook for the job market appears positive as demand is likely to increase for many roles across industry verticals.”

A deeper analysis of the Job Index shows that the hiring activity in the IT industry has recovered from the pangs of the slowdown and has moved up by 56% in May-10 over May-09. We see a similar recovery in the Banking and Auto sectors as well which moved up by 47% and 40% in May-10 over May-09. Thus, on a one year perspective, we see all functional areas, industries and cities moving in a positive direction indicating a stable job scenario in the country.

City wise Analysis: The hiring activity for all cities witnessed an upward movement in the job index on an annual perspective

On a one year perspective, recruitment has moved up across all major cities in the country. Pune and Mumbai moved up by 48% and 42% in May-10 as compared to the May-09 index. Similarly, Bangalore and Chennai moved up by 40% and Delhi moved up by 30% in May-10 over May-09.This clearly reflects that the first half of 2010 has seen some good times in the job market with the Naukri job index surpassing the pre down turn levels in Apr-10.

Industry Analysis: The hiring activity for all industry sectors witnessed an upward movement in the job index on an annual perspective

On a yearly perspective all sectors witnessed an upward movement in the job index indicating that the job market is back on track and has overcome the times of the slowdown. The job index for the IT Software and ITES sectors moved up by 56% and 19% in May-10 over May-09. The hiring activity for the Banking and Financial services has also seen an upsurge on an annual perspective with the index moving up by 47% in May-10 over May-09. Similarly Capital Goods, Insurance and Pharma sectors also grew by 33%, 17% and 11% in May-10 over May-09.

Functional Area / Department Analysis: Demand for professionals in all functional areas moved in a positive direction in May-10 over May’09

A year on year comparison of the job index shows that the demand for professionals in all functional areas grew in a positive direction with maximum growth witnessed among the professionals in HR, IT and Accounts. Hiring activity for professionals in HR, IT and Accounts grew by 68%, 54% and 22% in May-10 over May-09.The Professionals in ITES, Marketing and Project Management were also high in demand as the index moved up by 21%, 17% and 16% in May-10 over the May-09 index