Hiring Market Cools: Skilled Talent Demand Stays Hot

The global recruitment market has moved beyond the intense post-pandemic hiring surge, though demand for skilled professionals remains high. Following record-breaking years in 2021 and 2022, companies now offer more moderate salary increases of 5-8%, a significant decrease from the 15-25% seen previously. This adjustment addresses concerns about internal equity and escalating costs.

AI is beginning to reshape the workforce, with a current scarcity of ready-made talent. Companies are now focusing on hiring individuals with strong soft skills and a willingness to learn, intending to invest in their training over six to twelve months. This shift acknowledges that immediate value might not be the primary criterion.

India is highlighted as a crucial growth market for Michael Page, consistently delivering record results. Sectors like real estate, infrastructure, renewables, and data centers are driving demand. Furthermore, European companies are increasingly establishing Global Capability Centers (GCCs) in India, contributing to employment opportunities and enhancing competitiveness, with growth also emerging in Tier-II cities.

The US market shows strength in construction and manufacturing, fueled by infrastructure projects and reshoring initiatives. While corporate functions like legal and finance have not seen substantial recovery, these two sectors are performing exceptionally well. Geopolitical uncertainties can create a cautious environment for white-collar professionals, but Michael Page remains optimistic about a growing number of its operating countries experiencing growth.