Corporate India is indicating cautious hiring in the March quarter of 2023 as concerns rise over a possible recession and steady inflation, a survey said on Thursday.

According to the ManpowerGroup Employment Outlook Survey, based on interviews with nearly 3,030 public and private employers, hiring intentions will decrease in the quarter both on a year-on-year and quarter-on-quarter basis.

During the quarter, 48 per cent of employers expect to increase their staffing levels, 16 per cent anticipate a decrease in hiring intent and 34 per cent do not anticipate any change in hiring, resulting in a net employment outlook of 32 per cent.

When compared to the same period last year (January-March 2022), hiring sentiments have weakened by 17 percentage points and by 22 percentage points when compared to the previous quarter.

“Employers are cautious due to the impending recession and deepening global slowdown which also created a stir in the IT sector during the previous quarter,” Sandeep Gulati, managing director, ManpowerGroup India, said.

Citing reports, Gulati said 33 per cent of Indian CEOs have implemented a hiring freeze. “India may be impacted in the short term but in a country with the GDP net growth of 7 per cent, the market is expected to see a balanced approach with growth in the tech sector and start-ups,” he said.

“Consolidation of smaller start-ups dovetailing into the larger ones coupled with a measured approach to funding is expected to be the flavour driving the economy in 2023,” he said, adding that “with India all set to host the G20 leaders’ summit for the first time, we expect a lot to change in the employment related scenario during the year.”

According to the survey, hiring prospects have weakened in all four regions when compared with the previous quarter and same time last year.