In a fresh sign the nation's economic recovery may be losing steam, new data reveals corporate employment growth dropped to its lowest level in years during fiscal 2024. According to a report released by Bank of Baroda, one of India's largest lenders, job additions in the corporate sector declined to just 1.5% last fiscal compared to 5.7% the previous year.
In real numbers, companies added less than 100,000 jobs in FY24 versus over 330,000 jobs added in FY23. The Bank attributed the slowdown to base effects from the post-pandemic bounceback seen last year that boosted hiring. It also noted some companies may have scaled back staffing as business environments became less certain.
The data covers balance sheet disclosures from over 1,000 large and mid-sized Indian corporations across multiple sectors. While over 700 firms added headcount, more than 350 saw reductions. IT, Textiles and Banking were significant drivers of both hiring and layoffs. Industries like Realty, Retail and Infrastructure projects saw some of the strongest new job creation.
Looking ahead, persistently high inflation, rising interest rates and other global risks could impact the pace of future corporate recruitment. The figures offer an early signal that the economic rebound may be plateauing after a vibrant couple of years, though more data is still needed to confirm any longer term trends. As always, policymaker actions will be closely watched for clues on steering the jobs market in India's crucial corporate segment back towards stronger growth.
