Share of IT in job offers below 50%

1 min read . Updated: 10 Nov 2022, 01:25 AM IST Sohini Bagchi

The slowdown in hiring in the tech sector hints at a global economic downturn

NEW DELHI :

The technology sector’s contribution in active job offers fell to less than 50% for the first time in three years in October, even though total job openings rose slightly from September, when the sector saw a 36% dip in hiring from the year earlier, according to a report by staffing firm Xpheno.

The slowdown in hiring in the tech sector hints at a global economic downturn.

Job portal Monster.com also reported similar trends. IT services hiring fell 19% on its platform, it said in a report on 8 November. Overall hiring activity in India fell 6% from the year ago in October, it added.

According to Xpheno, the IT services industry was the top recruiter in India until last year, contributing more than 80% of jobs.

Product, services and internet-enabled sectors, accounted for over 106,000 jobs in October, falling from over 121,000 jobs in September. “This is the lowest active job volumes from the IT sector in over 28 months," said Anil Ethanur, co-founder, Xpheno.

While hiring by IT services and software service sectors fell 14% and 8%, respectively, a drop of 15% was recorded in jobs for internet-enabled services and startups. In contrast, banking, financial services and insurance recorded 21,000 active openings in October against 17,000 jobs in September.

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The good news, however, is that overall active job offerings recovered after sliding for over five months, rising 7% sequentially in October, the Xpheno report said. Non-tech sectors drove this recovery. “The drop and recovery will have a longer end-to-end duration of 6-8 months." Ethanur said.

ABOUT THE AUTHOR

Sohini Bagchi

"Sohini Bagchi is a senior assistant editor with TechCircle with over 15 years of experience in technology journalism. She has previously worked with IDG Media and Trivone Digital Services. Sohini is also a published author of fiction and non-fiction books. Her debut novel 'Road to Cherry Hills' enjoyed critical acclaim worldwide. Her second book 'Techtonic Shift' traces the history and evolution of computers and the Internet. Sohini has a masters degree in communications from Manipal Institute of Communication, Karnataka. She is trained in Karate and enjoys blogging and stargazing when she is not working. "