22% Decline in New Jobs Since July 2008 – Why Job Portal Model needs Innovation

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As per Naurki’s JobSpeak index data for the month of November 2008, number of new jobs have fallen by 22% since July 2008.

Excerpts from November Job Index:

  • Index (fall) : July 1000, October 781, November 771 (relative ranking of new jobs creation) – i.e. the significant dip started happening from Oct.
  • IT – both the Software and Hardware sector saw a dip in new jobs by almost 25% since July 2008.
  • Banking and Financial Services have seen a decline of over 32% in October, while Construction and Engineering have seen a decline in new jobs by almost 22% since July 2008
  • The BPO industry has witnessed a slight bounce back by 10% in October after witnessing a decline in new jobs in August and September [source]
Monster vs. Naukri Traffic

The relative traffic of Naukri and MonsterIndia clearly depicts the state of the industry.

So, who is Naukri losing to?

Apart from the bad economy (hiring freeze didn’t start in October, so there is something more than the economy which is contributing to the fall), Naukri and several job portals have started losing out to referral channels within the companies. Most importantly, all of these portals have failed (big time) to tap the varied demand of SMEs (i.e. startups/mid-sized companies).

And that’s because Naukris of the world are utterly useless when it comes to understanding the needs of small-mid size businesses.

There is a significant gap (which Techtribe and likes tried to fill, but with mixed results), but I do believe that naukri (and others) have to go beyond naukri – and get into career space.

The Naukri model is limited to big companies (headless HR, i.e) and is missing out on the volume business of mid-small size companies – Naukri (and the likes) really has no option but to reinvent the business and take a fresh look at the value delivered to both parties (i.e. companies as well as job seekers).

Infact, Naukri (and the likes) has failed to keep up with the growing demands of job seekers as well (how many middle-to-senior management profiles do they have?)

What’s your opinion on Naukri model? How many of you have a profile @ Naukri/MonsterIndia etc?

Related: Career Related Startups in India

PS: The Naukri name is used as a reference to of all the big job portals in India.

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