In the ever-evolving job market, recent graduates, including engineering and management graduates, are encountering a formidable challenge – a “fresher glut.” This phenomenon is the result of an influx of young professionals, comprising fresh graduates and those with one to two years of experience, seeking employment. In this article, we delve into the complexities of this situation, its causes, and its potential implications for the job market.
The Growing Pool of Fresh Talent
The job market landscape is shifting as an increased number of candidates from the 2022 batch of engineers and business school graduates are actively exploring job opportunities, particularly in sectors like consulting, IT services, and startups. This surge in fresh talent exacerbates the situation for the Class of 2023, whose job offers are experiencing delays or cancellations.
A Data Perspective
Data from HirePro reveals that nearly 45% of candidates from the 2022 batch are currently in pursuit of employment, a stark contrast to the typical 25% in a standard year. The uncertain global macroeconomic climate has prompted companies to adopt cost-cutting measures, which often involve trimming jobs and tightening recruitment processes. S Pasupathi, the Chief Operating Officer at HirePro, notes, “Our estimates suggest nearly 20-30% of the offers from the 2023 batch are delayed or revoked.”
Intensifying Competition
This scenario sets the stage for direct competition between the 2022 and 2023 batches, with the impending arrival of the Class of 2024 into the job market. Graduates from previous batches hold an edge, having gained valuable on-the-job experience, a quality highly valued by recruiters.
Future Implications
Experts anticipate that this predicament will pose considerable challenges for fresher placements in the Class of 2024. Many recruiters seek candidates with a few years of experience, particularly in technology-related sectors and startups, where maintaining a non-billable bench is financially challenging.
Impact on Tiered Institutions
The impact of this situation is likely to vary across educational institutions. Tier-1 institutions may experience a milder effect, while tier-2 and tier-3 institutes are expected to be more profoundly affected, according to experts.
The Decline in Fresh Graduate Hirings
Ciel HR Services CEO Aditya Narayan Mishra reports a decline in fresh graduate hiring, estimating a decrease of about 15-20% for the batch that graduated in June-July 2023 compared to the previous year. This decline is attributed to companies’ focus on cost optimization and efficiency improvement.
Balancing Supply and Demand
Sonal Arora, Country Manager at GI Group Holding India, highlights the current surplus of entry-level talent compared to pre-pandemic times. She notes that while 2022 witnessed a surge in demand for fresher and entry-level talent, the supply of such talent now surpasses demand in several sectors like IT services, ITeS, startups, professional services, and consulting, all of which have faced macroeconomic challenges.
Conclusion
The “fresher glut” presents a significant challenge for recent graduates entering the job market. As they navigate through this competitive landscape, it is essential for both educational institutions and employers to adapt to changing dynamics and explore innovative strategies to bridge the gap between supply and demand in the job market.
What is the “fresher glut” in the job market?
The “fresher glut” refers to the surplus of young professionals, including recent graduates and those with one to two years of experience, seeking employment, leading to increased competition.
Why has the pool of fresh talent grown in recent times?
The influx of candidates from the 2022 batch of engineering and business school graduates, looking for job opportunities, especially in sectors like consulting and IT services, has contributed to this growth.
How are delayed or revoked job offers impacting fresh graduates?
Job offers from the Class of 2023 are facing delays or cancellations, leading to direct competition with the Class of 2022 and putting them at a disadvantage.
