Unemployment Rate to Escalate
Feb. 5 – The Indian job market doesn’t look too optimistic these days. While falling exports mean that the export sector could loose up to 1.5 million jobs by March, large Indian conglomerates are thinking up innovative ways to lean their workforce. To add to India’s employments woes, fears are that the millions of Indian workers in the Gulf could return due to dire economic situations. Foreign companies such as IBM are also giving their employees in the west an option to relocate to India alleviating fears of further job losses in India’s thriving IT industry.
Although authorities say the situation currently isn’t alarming, if millions came to India in search of employment the situation will worsen. India has announced two stimulus packages targeting specific industries, however results are yet to be felt. Experts further fear that a spike in the unemployment rate could lead to social disharmony and unrests.
Many Indian firms are trying to abate job losses by giving their employees creative options. Mumbai-based IT firm Mastek has given 425 employees the option to resign or stay with the company and receive training. IT behemoth Infosys has offered employees a years sabbatical to do social work with charities the company has tied up with. FMCG conglomerate Hindustan Lever has significantly increased the proportion of variable pay in an employees overall compensation structure. While the Tata group has collectively decided to cut salaries depending on the severity of individual group companies affected by the downturn.
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