In the year ending in March, over 60,000 outsourced contract employees lost their employment in India’s information technology sector, as jobs for flexi workers engaged through contractors by corporations fell 7.7% from the previous year. Hiring in the manufacturing, logistics, and retail sectors, on the other hand, remained strong, aided by domestic consumer demand. The $194 billion software services industry, which helped firms embrace pandemic-era activities like online buying and remote working, is expected to decrease this year as staff return to offices and the Russia-Ukraine crisis weighs on expenditure from European clients.
The employment of flexi employees in the IT sector fell 6% quarter on quarter in the March quarter, indicating that hiring of contract workers through a third-party may continue sluggish in the software business for the next few quarters. The unemployment rate in India grew to 8.11% in April, up from 7.8% the previous month, for the fourth month in a row. Overall demand for flexi employees decreased in other industries as well, with vendors adding 177,000 employment in the fiscal year 2022/23, which ended in March, compared to 230,000 workers the previous year.
