Employment in the Indian manufacturing sector has increased for the 10th consecutive month in December 2024, according to the latest ‘HSBC India Manufacturing PMI’ report.
This consistent growth is a positive indicator for the sector, reflecting ongoing improvements in new work intakes and production processes.
Looking ahead to 2025, Indian manufacturers are confident of a rise in output.
Optimism is reflected in advertising, investment, and expectations of favorable demand.
However, sentiment is tempered by concerns around inflation and competitive pressures.
The report suggests that purchasing growth and shorter lead times underpinned another monthly increase in input inventories.
Manufacturing Sector: Robust Job Creation
The report highlights that around one in ten companies recruited extra staff, while fewer than 2% of firms shed jobs during the year.
The rate of job creation quickened to the fastest in four months, driven by the need for additional inputs to support production.
This trend underscores the sector’s resilience and adaptability in the face of economic challenges.
Key sectors such as Artificial Intelligence/Machine Learning (AI/ML), Oil and Gas, Fast-Moving Consumer Goods (FMCG), and Healthcare have shown robust demand for skilled professionals.
The growth in these sectors has contributed significantly to the overall increase in employment, reflecting the evolving job market dynamics.
Regional Insights, Export Orders and Input Prices
South India continues to lead the way in employment growth, with Chennai registering a 35% jump in recruitment and Bengaluru a 21% increase.
Coimbatore and Hyderabad also saw significant growth at 14% and 15%, respectively.
This regional performance highlights the sustained appeal of high-skill and fresher roles across various sectors.
The report notes an uplift in the growth of new export orders, which rose at the fastest pace since July.
Although new export sales rose at a slower rate than total new business, the pace of growth for the former strengthened as firms secured international orders from across the globe.
Additionally, the rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures.
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