A new report by TeamLease paints a not-so-rosy picture for engineers graduating this fiscal. Just 10% of the 15 lakh engineers graduating this fiscal year will be able to find a job, says the new report by Teamlease. The report reflects the stress of the global economic uncertainty. The IT sector, in particular, has reportedly cut back on fresh hiring by 35-40% compared to the previous fiscal, adding to the woes of these recent graduates.
According to the report by
TeamLease Digital
, the hiring landscape for
engineering graduates
is expected to fall short of pre-pandemic levels, with an estimated 1.6 lakh freshers finding employment, compared to the 2.3 lakh recruited in FY23.
The report attributes this shift in employer preferences towards mid-level employees with seven to 12 years of experience. The rationale behind this trend is companies' inclination to bypass the training period required for freshers, which typically spans six months.
Another reason is said to be the falling attrition rate in the IT industry. During FY22, as businesses embraced digital transformation initiatives across sectors,
fresher hiring
peaked at 4 lakh, and attrition rates soared to over 30%. However, the attrition levels have since subsided to an average of 16-18%.
Another reason is that the domestic talent pool has also witnessed an influx of US-based tech professionals following mass layoffs by global giants earlier this year.
Not all that bad
While challenges persist, there is a silver lining as demand is burgeoning in alternate sectors such as global capability centers (GCCs) and non-tech domains like banking, financial services and insurance (BFSI), media, retail, consumer business, life sciences & healthcare, engineering R&D, and energy. All these sectors are said to be expanding entry-level hiring.
The report also has some tips for these engineering graduates. It emphasises the need for skill proficiency. The report claims that only around 45% of this year's engineering graduates are likely to meet industry requirements. Companies are increasingly seeking talent that possesses a blend of soft skills -— such as communication, problem-solving, teamwork, and emotional intelligence—along with technical proficiency in programming languages, software development methodologies, cloud computing and data analytics.
English (US) ·