A slowdown in India’s GDP growth has begun to affect job market and if the Indian economy continues its journey to recession, then more sectors could catch the malaise of job losses, which is restricted to a few at present.
Human resource consultants say that hiring sentiment has been weakening over the last six months and feel that annual salary increments for the current year could be disappointing for the employees.
The sectors where new job creation has been adversely affected include fast moving consumer goods (FMCG), sales, customer service operations, insurance and telecom.
Staffing firm TeamLease estimates that between sales and customer services, new job creation over the last six months has reduced by 15% when compared to the same period a year ago.
“If the current slowdown trend continues then automobiles and business process outsourcing (BPO) could be next in line where new job creation could feel adverse impact,” Manish Sabharwal, chairman TeamLease Services told Hindustan Times.
In fact, it’s not that the slowdown is eating into entry level jobs only rather middle and top level executives are feeling heat as well.
“A year back, we could tap on the top executives for a job switch over as business was growing and opportunities were galore. Today people just do not want to change jobs, rather they want to stick with their existing jobs,” an executive from a leading head hunting search firm said on condition of anonymity.
So are we heading towards a 2008-like situation when cost cutting became a norm and pink slips were handed out to employees?
“Well, the current situation is not like 2008, but definitely the business sentiment is weak and companies are being extremely cautious to fresh hiring,” said Hitesh Oberoi, chief executive officer and managing director of Infoedge. Infoedge owns the job searching portal naukri.com.
Sabharwal added that it is the uncertainty in policy decisions, which has is paralysing businesses and sending confusing signals.
“The country’s longer term growth story is still intact and ongoing global crisis makes India an attractive investment destination. If only we sort out policy decisions then things could come on track,” Sabharwal said.