India has emerged as the most optimistic nation in terms of hiring intentions across the world, but going forward the employment outlook seems challenging, global staffing services firm Manpower said.
"While employers in India continue to show optimism in their hiring intent, the impact of US slowdown has started showing its impact," Manpower India Managing Director Naresh Malhan said while releasing the latest Manpower Employment Outlook Survey.
Malhan further noted that 'future trends would be challenging and the October to December quarter would be a testing time largely due to rising crude oil prices.'
India is expected to report the most bullish hiring plans in the July-September period, followed by Singapore and Peru as the global slowdown impacted the hiring intentions in these countries, he said.
India has made a gradual upward movement since the last two quarters, as in the Manpower March quarter survey the country was at the second position while in the December quarter it held the third spot.
Of the 5,636 employers surveyed, 45 per cent expect an increase in hiring activity in the third quarter of 2008, an increase of 6 per cent on a quarterly basis and 7 per cent on a year-on-year basis.
The other top 10 most bullish nations worldwide include Poland (29 per cent), Costarica (27 per cent), Romania (26 per cent), Hong Kong (26 per cent), Argentina (25 per cent), Taiwan (24 per cent), Australia (23 per cent).
"We believe the growth story of developing nations like India to remain firm as companies continue to invest in technology to drive their growth, fight global competition, cut cost and improve efficiencies and is reflective in their mood to hire despite the slump," Malhan said.
Employers in all eight countries and territories surveyed across the Asia Pacific region anticipate positive hiring activity for the third quarter. Employers in India and Singapore are the most optimistic while companies in China and New Zealand reported the weakest forecast in the region.
"China and India are at a different footing altogether. While China is a export oriented economy, India's economy is largely based on its own consumption, hence the difference in their hiring intentions," Malhan said.
According to the survey, China reported the weakest hiring outlook in the region for the fourth consecutive quarter.
The survey includes employers across seven industry sectors -- finance/ insurance and real estate; manufacturing; mining and construction; public administration and education; services; transportation and utilities; wholesale and retail trade.
As per the survey, the services sector emerged as the most optimistic while public administration and education segment showed the weakest hiring intentions.
Finance, insurance and real estate sectors are considerably stronger on quarter-over-quarter basis.
On a zonal basis, employers in North India would witness the most robust hiring pace (50 per cent), while hiring intentions are the weakest in the East, (30 per cent).
On a global basis, out of the 32 countries, 31 are expected to report positive hiring intentions barring Spain.
Majority of employers worldwide are less optimistic about adding employees in the quarter ahead and also when compared to one year ago with Argentina, New Zealand, South Africa and Spain reporting the least optimistic hiring expectations since the survey began in these countries.