After tepid 2023, tech & start-up hiring expected to improve in 2024
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After a rather subdued hiring environment in 2023 due to global macroeconomic factors, the two mainstays of Bengaluru’s white-collar job market – tech and start-ups – are expected to see a much better 2024, experts and analysts told DH.
Traditional IT services firms – which account for a vast majority of talent intake in the sector – are expected to report a 10-20% growth in hiring numbers this year. And in the start-up space, experts believe the second half of 2024 may see an uptick in human resource intake as the economy recovers and funding increases.
“Startup hiring may remain at similar levels during the first half of 2023, but H2 is when we expect it to pick up again. A lot of new companies working in sectors like health, AI and deep tech are expected to drive hiring,” said Anshuman Das, co-founder and chief executive officer of Careernet.
Funding in the startup sector fell 65.8% in January-November 2023, which led to a 35-45% drop in hiring year-on-year. At the same time, layoffs went up 40% as more than 15,000 employees were laid off by roughly 100 Indian startups in 2023. Pay hikes when switching jobs stood at 25-65% in 2021, but that turned to pay cuts of up to -20% in 2023. Things may not start looking bright at the turn of the year, but a correction is expected to happen as it progresses.
Das said that while early stage startups may offer lower packages, good talent is still moving there as they provide better prospects for growth than established startups with plateaued growth and higher risks of layoffs do.
