New data from global hiring and matching platform Indeed indicated that formal job creation in India softened further in October, with job postings down 5.6% on the platform. This marks the second consecutive month of decline, leaving postings 19.8% lower than a year ago.
Nevertheless, Indian job postings are 60% above pre-pandemic levels but have fallen 25% since their peak in January 2023.
Banking and retail perform weak
Over the past three months, job postings declined in almost three-quarters of occupations.
Job postings in cleaning and sanitation rose around 20% over the past three months, ahead of community and social service (+17.4%), dental (+13.1%), nursing (+11.2%) and food preparation and service (+10.3%). Another positive was the posting for human resources, which climbed 2.3%.
However, these gains were more than offset by weakness in banking and finance, where postings fell 25.6%, along with legal (-22.4%), retail (-16.7%) and loading & stocking (-15.0%).
Demand supply mismatch
According to a communique from the platform, India appears to be creating more than enough jobs to support their ongoing economic transition, with the unemployment rate stable at 5.2%. However, the challenge is to ensure that the skills of its workforce match the skills demanded by employers.
“Many employers across India are seeking highly skilled workers in technology and management, but that doesn’t always align with what job seekers have to offer. Consequently, India’s unemployment rate tends to be higher on average than in other countries throughout Asia.,” the statement said.