The Federation of Indian Chambers of Commerce and Industry (FICCI) found in its Startup Hiring Trends survey that IT, agritech, artificial intelligence, fintech and manufacturing are among the industries with the highest hiring intent.
According to the 2023 Startup Hiring Trends survey conducted by FICCI in partnership with Randstad India, 80% of early-stage startups (with fewer than 20 employees) are actively seeking to expand their workforce in 2023. Over 300 startups took part in the survey. Additionally, 92% of these startups indicated that new project orders, additional funding from investors, and expansion strategies will influence their hiring decisions.
In a discussion of the survey, Dr. Anita Gupta, Head of Innovation and Entrepreneurship, Department of Science and Technology, that about 48% of startups are based in Tier 2 and Tier 3 cities, showing that they are driving the local ecosystem. “Now the trend is that you name a sector and you find a startup. The startups could make a bigger contribution to employment,” she said.
According to the survey, agriculture or agritech, AI, machine learning, automotive and e-commerce or delivery services are expected to increase hiring by 11-20%, while start-ups in aerospace and defence, energy and healthcare are expected are likely to make more hires than 30%.
More specifically, the survey found that Healthcare (13%), IT/ITes (10%), Agri/Agritech (8%), AI/ML/DeepTech (7%), Fintech (7%) and Manufacturing (7%) ) ) are the industries with the greatest hiring intent.
All of this hiring will be mostly at the lower and middle levels, and around 37% of startups said they intend to hire more lower-level employees, while just over 27% of those surveyed intend to add more mid-level employees set.
The survey also found that while Hyderabad and Pune are emerging as regions with a strong desire for senior-level appointments, mid-level recruitment is common in Kolkata, Bengaluru, Mumbai, Chennai, Pune and Delhi/NCR.
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However, Jeet Vijay, CEO of Startup Hub, Ministry of Electronics and IT, said in a panel discussion that the majority of people in India live in small towns and small towns, which are hit hardest by unemployment and that should be the focus.
“Any government initiative is now more focused on how to activate the resources in these cities so that jobs can be created there. MeitY is also developing Genesis, which focuses on financing startups in Tier 2 and Tier 3 cities or emerging cities in India,” he said.
He further explained that it will be a Rs 4.90 crore project and the government will only fund startups from small towns. According to Vijay, this initiative doesn’t require the startups to relocate to big cities to get funding or relocate to access the ecosystem.
“A lot of these startups, if they’re working out of small towns, they’re going to create solutions that solve local problems and employ local people. To serve these firms, a local vendor ecosystem will also develop,” noted Vijay.
ChatGPT and its impact on the job market also came up for discussion.
Viswanath PS, MD and CEO of Randstad India Private Limited said: “Technology is helping to make the recruitment process more efficient and recruiters can use AI or ML to handle high volume operations, especially if you are hiring in large numbers. It also plays a role in driving employee engagement.”
“Around 88% of companies worldwide are already using AI and as far as ChatGPT is concerned, people can use it to develop job descriptions, productive interview questions and also to improve effective communication. So I think technology is a enabler, but at the same time the human connection is just as important,” he added.
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