Rising government initiatives to digitalize various industries, including oil & gas, real estate, banking, IT, and pharma, among others, are expected to create job opportunities during the forecast period. According to the All-India Council for Technical Education, approximately 60% of 8 lakh graduating engineers stay unemployed, while 39% of recruiters struggle to find skilled employees. To overcome this gap, the adoption of staffing & recruitment solutions in India is growing significantly., thereby augmenting the growth of staffing and recruitment market
The COVID-19 pandemic has accelerated the adoption of remote work arrangements among organizations due to strict government regulations in the country. Many businesses in India are still operating in a remote working model due to its benefits. Such a boom in remote working has accelerated the online staffing and recruitment process among employers and job seekers. For instance, according to SutraHR, companies in India have seen a 68% growth with remote working in 2023.
India has been facing unemployment issues, and the rise in competition and cost of living make it difficult for the unemployed population to find an excellent job with the right salary package. However, India's rapid economic development in recent decades led to the rise in the adoption of advanced technologies across all industries, which requires a skilled workforce. Hiring is increasing rapidly with increasing job vacancies in India. For instance, in August 2023, staffing companies estimated that ~60,000 jobs are likely to be created in India in the next 6–12 months to meet the workforce demands of leading mobile handset makers in the country.
Mumbai, Kolkata, and Ahmedabad observed significant growth in jobs from real estate and banking sectors. In Mumbai, there are ample job opportunities in different industries, from entry-level to the topmost positions. In 2021, Mumbai contributed more than 6% of the country’s GDP, which indicates immense job opportunities in Mumbai. According to the Employment Trend Survey (MSETS), approximately 7 lakh new job opportunities were created in 2020 by top public and private sector banks, pharma companies, IT firms, textile industries, production houses, and other sectors in the city. In 2020, the IT sector reached a total of 30 million IT professionals, while the telecom sector has a customer base of 850 million, and the healthcare sector created over 40 million new job opportunities in the same year. New job opportunities in the IT, telecom, and healthcare sectors require skilled staffing and recruitment professionals to hire an appropriate candidate as per job requirements. All these factors are expected to boost the staffing and recruitment market during the forecast period.
Moreover, with the advent of new technologies such as AI, machine learning, and blockchain, the demand for skilled IT professionals will grow significantly in the coming years. For instance, according to a report by Quess IT Staffing, the demand for skilled talent has increased across various industries in metro cities such as Bengaluru, Hyderabad, Pune, and Chennai between April and June 2022. This is likely to create significant growth opportunities for the staffing and recruitment market players operating in the IT industry in India. According to the same report, the country’s IT industry added 4,50,000 jobs in FY22. Hyderabad was the top recruiter of IT professionals among all metro cities in India. Hyderabad hired 23% of IT professionals, followed by Bengaluru (33%), Mumbai (12%), Pune (9%), and Chennai (5%). The high adoption of cloud-based technologies across the country, coupled with government initiatives to promote the adoption of advanced solutions across all industries, is expected to influence the adoption of staffing and recruitment services in the coming years, and will propel the growth of the staffing and recruitment market.
In India, the retail industry has emerged as one of the most dynamic and fastest-growing industries due to the entry of new players. According to World Bank’s Doing Business 2020, India is the world’s fifth-largest destination across the globe in the retail space after the US, Canada, Germany, the UK, China, Japan, France, Australia, Switzerland, and Italy. The Government of India is attracting several international companies to set up their base in the country by liberalizing the FDI policy. Growing digitalization in India is creating new job opportunities in the retail sector, which require staffing and recruitment services to recruit and hire the right candidate. Thus, the above-mentioned factors contribute to the growth of the staffing and recruitment market.
According to the Department of Commerce, Ministry of Commerce and Industry (Government of India), in 2021, the country reached 1.2 million daily e-commerce transactions. It is expected that online shoppers are expected to reach approximately 500 million by 2030. Also, the e-commerce market is expected to generate a gross merchandise value (GMV) of US$ 350 billion by 2030. The growth in the e-commerce and retail industries requires manufacturers to produce large-quality goods to manage inventory. The staffing and recruitment services and solutions help employers to hire skilled candidates. Employers can also take the benefits of staffing and recruiting agencies in accelerating the hiring process in a cost-effective manner. Such factors are estimated to fuel the need for staffing and recruitment solutions among manufacturers in the coming years. Thus, such instances propel the growth of the staffing and recruitment market.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 18.06 Billion |
| Market Size by 2030 | US$ 48.53 Billion |
| Global CAGR (2022 - 2030) | 13.2% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Staffing Type
|
| Regions and Countries Covered | India
|
| Market leaders and key company profiles |
The List of Companies - India Staffing and Recruitment Market
The incremental growth expected to be recorded for the India staffing and recruitment market during the forecast period is US$ 30,469.52 million.
The India staffing and recruitment market is expected to reach US$ 48530.94 million by 2030.
The key players holding majority shares in the India staffing and recruitment market are Adecco Group., Randstad N.V.; ManpowerGroup; Recruit Holdings Co., Ltd.; NES Fircroft
Automation and AI-driven recruitment is anticipated to play a significant role in the India staffing and recruitment market in the coming years.
Huge job opportunities in the BFSI sector, workforce localization in India, rise in demand for contract and temporary staffing are the major factors that propel the India staffing and recruitment market.
The India staffing and recruitment market was estimated to be US$ 18061.42 million in 2022 and is expected to grow at a CAGR of 13.2 % during the forecast period 2022 - 2030.