There is no one out in the world who is oblivious that covid has brought drastic changes in the job market. Almost everyone is facing job insecurity. The covid pandemic is not only a health issue but also an economic problem. The impact on hiring rate all over the world is significantly impacted. The ways of recruitment are moulded by the covid now.
Are employers hesitant in hiring?
The covid outbreak created a very uncertain situation. It left professionals increasingly vulnerable to economic uncertainty. Many people were laid off, and the hiring rate was plummeting. There have been some improvements in the hiring rate as compared to the previous year.
The employment situation in India before covid was not doing well. The country was not producing enough jobs for its youth, and the unemployment rate had reached a 45-year high. Covid worsened the unemployment situation in the year 2020. With lockdowns, many economic activities came to a grinding halt.
According to the Centre for Monitoring Indian Economy (CMIE), in 2020, covid led to a spike in the unemployment rate to 27.11% for the week ended May 3, up from the under 7% level before the start of the pandemic in mid-March.
Employers were cautiously hiring those individuals for indispensable jobs.
In 2021 the restrictions were eased compared to 2020, and many economic activities are coming on track. Recruitment activity has been slowly improving, with the hiring rate in June 2021 being about 42% higher than pre-pandemic levels in 2019.
The LinkedIn India Labour Market Update for June 2021 showed a deepening hiring trough in April 2021, coinciding with the second wave of COVID-19 cases in India. It has been slowly improving since then, compared to pre-COVID levels in 2019. At the end of May 2021, the hiring rate was 35% higher, and at the end of June 2021, it was 42% higher.
The increase might be attributed to the release of delayed hiring, as employers adopted a more cautious approach to recruiting in 2020.
What is the pattern of recruitment now?
Recruiters had a difficult year last year. Covid and its ramifications wreaked havoc on some recruitment teams, piled additional expectations on others, and proved to be a defining moment for many, as virtually recruiting and onboarding a remote workforce became the norm.
News18 reports, “One in every two employers in India hired virtually during the pandemic, said Sashi Kumar, head of sales, Indeed India. Remote jobs have grown by 966 per cent between April 2020 and April 2021, as per Indeed. It has also seen a 22 per cent jump in freelance jobs in January 2021 as compared to January 2019.”
The challenges of 2020 undoubtedly influence recruitment patterns in 2021. More businesses use virtual recruitment technology, focus on diversity, equity, and inclusion, and move their recruitment efforts to distant applicants. The top recruiters take advantage of the chance to learn new abilities, adjust as needed, and demonstrate their worth to the company.
According to 70% of LinkedIn study respondents, a hiring process that mixes virtual and in-person processes will become increasingly typical owing to the accompanying cost and time benefits, just as a hybrid workforce of onsite and remote employees will become more accepted.
Some experts predict that businesses will grow their staff through internal mobility programmes connected to reskilling efforts or engage contingent labour instead of recruiting outside. Others believe that businesses will shift from fixed positions to project-based, cross-functional work driven by changing company demands.
According to LinkedIn’s Future of Talent study, in the post-Covid age, nearly 9 out of 10 Indian firms are trying to fill available positions internally. Companies need an insider’s perspective or a sense of progress for a variety of reasons. According to the research, strong communication, problem-solving abilities, and time management are the top three talents organisations seek when recruiting internally.
Covid has boosted demand for developing technology solutions in the education-tech, health-tech, and fintech industries.
These industries are still undergoing substantial digital transformations. Professionals who can easily transition to digital-based operations will be in high demand and are predicted to grow in popularity in the employment market. Meanwhile, positions like human resources, sales, and business development rely on the same fundamental competencies. They will require the addition of digital technologies to improve performance.
And even the trending jobs of 2021 are tech-based. According to LinkedIn, freelance content makers, social media and digital marketing jobs, artificial intelligence, specialised engineering positions, and education roles such as academic adviser, admissions officer, curriculum developer, and others are among the best employment options this year.
Impact of covid on other industries
The healthcare industry is overwhelmed as a result of the pandemic. Healthcare providers are the largest sector looking to increase staffing levels.
Covid also impacted a variety of businesses, including travel and tourism, hospitality, real estate, and brick and mortar stores.
To satisfy demand, essential shops that remain open during the lockdowns, such as chain stores, supermarkets, pharmacies, and chains, are recruiting on a huge scale. Many companies are rapidly growing their workforce to allow for more downtime or flexible hours for employees and maintain staffing numbers.
To summarise, changes are difficult to implement. The pandemic has necessitated a shift to remote methods. Employers and job seekers need to adapt to the changing patterns of recruitment. The need for tech-savvy individuals is surging, so the candidates need to skill up to survive in the dynamic environment.