INSUBCONTINENT EXCLUSIVE:
Thousands of job seekers, including graduates from top-tier engineering and management institutes, are finding themselves impacted by what
This glut results from a surge in the talent pool of young professionals, comprising recent graduates and those with one to two years of
experience.Recently, a fresh Vellore Institute of Technology graduate secured a placement with an American e-commerce giant in January,
boasting a promised cost-to-company (CTC) package of approximately Rs 50 lakh post-confirmation
The CTC encompassed all perks, benefits, and restricted stock units
However, a few months into the internship, the pre-placement offer was abruptly canceled with the company citing role unavailability, the
report quoted S Pasupathi, the chief operating officer at HirePro saying
The recruitment firm is now aiding the graduate in securing alternative employment
This year, the pool has notably expanded due to a higher-than-usual influx of candidates from the 2022 batch of engineers and B-school
graduates seeking job changes in sectors like consulting, IT services, and startups
This influx compounds the situation for the 2023 batch of freshers whose final job offers face delays or cancellations.According to data
from HirePro, nearly 45% of candidates from the 2022 batch are currently actively seeking employment, compared to the usual 25% in a typical
The uncertain global macroeconomic climate has compelled companies to trim jobs and tighten recruitment processes to cut costs
S Pasupathi stated, "Our estimates suggest nearly 20-30% of the offers from the 2023 batch are delayed or revoked."This scenario leads to
direct competition between the 2022 and 2023 batches, with the looming presence of the 2024 batch entering the job market in a few months
Furthermore, previous batches hold an advantage, having gained on-job experience for a year or so, a factor valued by recruiters, he
added.Experts predict that this situation will pose significant challenges for fresher placements in the Class of 2024
Many recruiters seek candidates with a few years of experience who can quickly adapt to their roles, particularly in technology-related
sectors and startups, where maintaining a non-billable bench is unsustainable.This predicament unfolds just ahead of the upcoming placement
season at business schools and engineering institutes
Tier-1 institutions may experience a milder impact, while tier-2 and tier-3 institutes are likely to be more affected, according to
experts.Ciel HR Services CEO Aditya Narayan Mishra noted, "Our estimates show a decline in hiring of freshers by about 15-20% for the batch
which graduated in June-July 2023 compared to a year ago." He attributed this decline to companies' focus on cost optimization and
Group Holding India, observed an abundance of entry-level talent compared to pre-Covid times
She explained, "It is indeed more than regular years
While 2022 was an exceptional year for fresher/entry level talent with high resurgence in demand, even compared to pre-Covid levels, the
supply of talent is more than demand in many sectors like IT services, ITeS, startups, professional services, and consulting, which have
been impacted by macroeconomic headwinds."
