New job creation in India next three months is likely to be the worst ever— and that could lead to a lost year
- According to the
ManpowerGroup Employment Outlook Survey2020, merely 5% employers anticipate an increase in headcount — the weakest since the survey began 15 years ago.
- The report reiterates the hiring decline reported by the job portal Naukri.com — by over 60% in May.
- According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate stood at 24.3% during the week ending May 24.
According to the ManpowerGroup Employment Outlook Survey 2020, employers expect a bleak
The report anticipates better hiring prospects and job opportunities in the North and South regions, as compared to western and eastern parts of India.
The report shows a similar hiring trend analysed by the job portal Naukri.com. According to Naukri’s report, the hiring activity declined by over 60% in May. This accounts for 916 job postings in the last month compared to 2,346 during the same time period in 2019. And, the decline was majorly in metro cities like Kolkata, Delhi and Mumbai.
Essentially, six months of the year have been lost, first to severe job losses and then to a tepid recovery. A lost year in creating job opportunities poses a grim picture for a country where millions of youngsters join the workforce every year.
According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate stood at 24.3% during the week ending May 24. In fact, the urban unemployment rate went up to 27% in mid-May — higher than the rural unemployment rate. This means, less than 25% of the urban working age population is employed.
The april-June quarter was comparatively steady with nearly 12% employers expecting an increase in payrolls.
While wholesale and retail trade are the two areas that were largely impacted due to the coronavirus lockdown, sectors like mining, construction, finance, insurance and real estate are looking up to stable hiring opportunities, going forward. The net employment outlook for the mining and construction sector stood at 12%, the
“Corporate India is rationalising its workforce in response to the economic slowdown. It is indeed a “wait and watch” game as organizations are gearing up for the post lockdown era where they anticipate an upsurge in demand. India is optimistic and the Government’s stimulus economy package may boost the economic activities across sectors,” said Sandeep Gulati, Group MD of ManpowerGroup India.
Technology gets a boost
Gulati believes that technology has significantly shaped the way people work, leading to increased adoption of digital technologies during the lockdown.
“Technology has been the game changer during the Lockdown period with corporates moving to virtual meetings, conferences and even upskilling programs. The new normal is dynamic and ever evolving,” he said.
Given that, companies are more likely to invest in digital skills. “Employees need to be up-skilled and reskilled during this lockdown period and be prepared for the changed workplace environment. The current disruption has reinforced the need for technical, digital and soft skills required to work both in the virtual and digital world and these are the skills hiring managers are seeking in employees,” Neeti Sharma, SVP, TeamLease Services told Business Insider.
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