Hiring may slow down soon as Russia crisis, rising rates bite

The job market frenzy of the last few months is likely to see some tapering off in the coming quarters partly because of a natural cooling-off process, as well as factors such as inflationary pressures, the continuing Russia-Ukraine conflict and rising interest rates.

Leading recruitment firms and HR experts said the second half of the calendar year may see a 10-20% slowing down from current levels across replacement hiring as well as new job creation, with companies pulling back on astronomical hikes and counteroffers that have become par for the course in recent times. “What has been happening in the job market for the past few months is not sustainable – the crazy attrition, salary offers will slow down,” said Shiv Agrawal, managing director of ABC Consultants. “It could be the beginning of the end of the ‘Great Resignation’.”

While job activity is still extremely bullish with mandates coming in across sectors, led by tech/IT/digital, experts said some correction may start happening in the next few months.