The government's reforms to boost local manufacturing have triggered the creation of new jobs in the sector, and 60 per cent of employers in the manufacturing segment aim to recruit and expand their resource pool in the first quarter of 2023, a report showed on Tuesday.

The positive higher hiring sentiment is attributed to large-scale enterprises (69 per cent), followed by medium (44 per cent) and small (39 per cent) businesses.

The overall intent to hire for both the manufacturing and services sectors combined grew from 65 per cent in Q3 to 68 per cent in Q4 of the ongoing financial year, according to the report published by employment services provider TeamLease.

"The global employment rate has increased considerably post the last Covid-19 wave and is poised to grow stronger in the coming quarters. With domestic demand increasing, despite stringent external conditions, the manufacturing industry is projected to witness all-encompassing growth," said Mahesh Bhatt, Chief Business Officer, TeamLease Services.

In the January-March 2023 period, employers in the manufacturing sector are most enthusiastic about recruiting at the junior level (60 per cent) and entry-level (55 per cent), followed by mid-level (27 per cent) and senior level (24 per cent).

The intent to hire is greater in Metro and Tier I cities (94 per cent) as compared to Tier II cities (73 per cent), Tier III (43 per cent), and the rural sector (23 per cent).

The cities with the highest intent to hire are Mumbai, Bengaluru, Chennai, Delhi and Pune.

"Hiring intent for Q4 has increased by 3 per cent and will continue to surge in the coming quarters as well. Production-linked incentive schemes, along with financial impetus for the manufacturing segment that the budget is likely to address, will promote employment optimism," said Balasubramanian, Vice President and Business Head - Consumer and Healthcare, TeamLease Services.

Further, attrition appears to be more balanced in the sector. Apart from healthcare and pharmaceuticals that have shown a double-digit attrition rate during the July-September period this year, the manufacturing industry has single-digit attrition rates, said the report.