No hiring contraction in 2012-13: Naukri.com

India’s largest online job search portal Naukri.com does not foresee any contraction in hiring sentiment in the coming fiscal. But headcount could rise if the government initiates policy measures and economic reforms, it said Thursday.

"I don't foresee employment to contract as long as the growth stays above six percent or five-and-a-half percent," said Sanjeev Bikhchandani, founder and vice chairman, Info Edge India, the firm that owns Naukri.com.

"However, to see massive increase in hiring with the economy slowing down every quarter will be difficult," Bikhchandani told IANS.

According to Bikhchandani, the hiring sentiment can pick up if the government initiates policy measures and economic reforms.

"Hopefully the government takes some policy measures and announces reforms, like the interest rates should come down a bit. They (government) have talked about foreign direct investment (FDI) in (multi-brand) retail and some of the economic bills which are pending be cleared. Theses steps would help."

He further said that economic growth rate had to improve to increase the hiring sentiment.

"In most sectors we are seeing that there wont be massive increases in employment until the economic growth rate improves."

The gross domestic product growth fell to 6.9 percent in the second quarter of the current financial year, the lowest in over two years.

Giving a sector-wise view, Bikhchandani said employment prospects in insurance and telecommunications sectors may be hit.

"I think right now the sectors that look most challenged are the insurance and telecommunications," Bikhchandani added.

"Information technology (IT) will be fine. There won't be a massive increase in hiring, but as long as the exchange rate stays at Rs.52 or Rs.53 per dollar, the sector will benefit."

Bikchandani, however, cautioned that any adverse outcome from the European debt crisis would hit the sector.

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