As the demand-supply gap widens, the country might have to see lay-offs, Union Minister for Labour and Employment Oscar Fernandes has said.
“The job market depends on the demand-supply equation. We can keep the production going up to a level, but if there is no market for the produce and if the stocks are piling up, you can’t keep on adding to the stocks. This, in turn, will effect jobs,” Fernandes told HT over the phone on Tuesday.
Outlining the steps taken by the government, he said if there was no demand (because of the recession), it would lead to a difficult situation. “We’ll do everything possible to see that production chain is continued. The banking system is strong and there is a mobility of resources. Liquidity can also be provided, but if there is no demand, (it will be a problem),” he said.
Though Fernandes hinted that the labour market would have to bear with the slowdown for some time, he said India was a big market and he expected production to remain normal, which would protect jobs.
He denied that large-scale job cuts were already on. “There might be a slight effect on some sectors later but right now there are only apprehensions. It’s talk rather than reality,” Fernandes said.
He, however, did admit that export-oriented industries like textiles had been hit.