Recession: More than 70% of Engineering graduates of 2023 are unemployed The placements report in the IT sector for 2023 graduates has hit very low numbers compared to the last few years. The companies are barely hiring with tight selection processes leading to low hiring numbers which can be seen as decreased to 60% at present. You can check out several factors in this article that impacted the IT industry causing lower hiring numbers.
Recession Effect:
Mass recruiters like Infosys, Wipro with other companies have hired very low in 2023 compared to the last 3 years and this is mainly because of a reduction in client demand. The MNCs hired more graduates in the last few years predicting a high demand in the future and offering employment opportunities to many but here instead of getting high the client demand has seen a sudden decrease and this decrease is an effect of recession in countries like the UK and USA. Do you know what is meant by recession? When the inflation rate goes high leading to an Economic slowdown the banks increase the interest rate for lending money to tackle further decreases in the economy of the country.
Decline In Economic Rate:
This sudden decrease in demand from the client side affected the company where they have provided Offers for many graduates. Due to this, the company extended their joining to future dates as the company needed to provide funds from their pocket revenue. On the other hand, the wars of the Israel conflict and the Hamas conflict are reasons for the economic slowdown in English countries after the recession which has raised doubts in clients regarding the risk factor of growth in the future. Due to these reasons, the company is not ready for hiring in high volume at present. Even though the new technologies of AI(Artificial Intelligence) and ML( Machine learning) are in trend the implementation and usage of those technologies take time.
Upcoming Challenges and Concerns in IT Hiring:
As many graduates have been waiting for their onboarding dates for the last 2 years the companies trying hard to provide employment to selected candidates in the year 2022 even after the demand has declined and this caused the companies to hire in fewer numbers for 2023 graduates and are in plans to decrease the hiring furthermore for upcoming batches which are going to decrease the hiring rate to 40% by IT companies comparing to last year. This is a rising concern for students who are looking for job opportunities in the IT sector.
Conclusion:
Keeping this in mind the companies are even hiring less for 2024 graduates which is going to increase the unemployment rate in India as a sector is a career choice for many graduates. On the other hand manufacturing companies like L&T, and Tata Steel are increasing their hiring numbers from 15% – 30% which can be considered as a good sign, and the 2024 graduates looking to get placed in these companies are considered as their first choice for employment.
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