Amid hir­ing freeze, job mar­ket heads for an­other gloomy year

Hindustan Times (Delhi) - - Front Page - Hi­mani Chandna hi­mani.chandna@hin­dus­tan­times.com

NEW DELHI:

Plan­ning to change your job this year? Might not be a good idea! You might not find many job open­ings in 2017. The job mar­ket is headed for yet an­other dull year with many em­ploy­ers in wait-and-watch mode.

In fact, com­pa­nies might just start hand­ing out pink slips, re­cruit­ment ex­perts warned. The Cen­tre’s de­mon­eti­sa­tion move and the elec­tion of Don­ald Trump as the US pres­i­dent are likely to im­pact the lives of 500 mil­lion work­ers in In­dia. The sec­tors likely to get hit the most are in­for­ma­tion tech­nol­ogy, e-com­merce, real es­tate, ad­ver­tise­ment and me­dia, con­struc­tion and in­fra­struc­ture.

For In­stance, the e-com­merce sec­tor that em­ploys around 1 mil­lion peo­ple may fire around 200,000 em­ploy­ees in the next year. “Cash on de­liv­ery be­ing al­most 70% of the over­all e-com­merce busi­ness, the sec­tor is likely to take a hit and lose al­most 20% of their head­count in the next few months,” said Ri­tu­parna Chakrabort­y, co-founder at staffing firm Team­lease Ser­vices.

Anan­dorup Ghose, di­rec­tor at US-based hu­man re­source con­sul­tancy Aon He­witt, echoed sim­i­lar views. “For the next six to eight months, we could fore­see job losses and a freeze on hir­ing. More­over, if the gov­ern­ment’s ob­jec­tives (re­lated to de­mon­eti­sa­tion) are not met, we should ex­pect more chal­lenges.”

Ac­cord­ing to global ad­vi­sory, Wil­lis Tow­ers Wat­son, only 31% com­pa­nies are pos­i­tive about their hir­ing out­look in the next 12 months and em­ploy­ees are likely to see sin­gle digit salary hikes for the first time since 2011.

An­other sur­vey by job por­tal Mon­ster.com high­lighted the steep de­cline in re­cruit­ment in pro­duc­tion and man­u­fac­tur­ing sec­tors. “These two key mass re­cruit­ing in­dus­tries con­tinue to show de­clin­ing growth ow­ing to de­pressed pri­vate in­vest­ment and global eco­nomic and po­lit­i­cal events,” said San­jay Modi, man­ag­ing di­rec­tor, Mon­ster.com. The IT in­dus­try is un­der­go­ing a phase of dis­rup­tion and has wit­nessed di­min­ish­ing growth fig­ures for the past cou­ple of months. “The elec­tion of Don­ald Trump as US Pres­i­dent is not a pos­i­tive step for the IT in­dus­try. The in­dus­try would wait and un­der­stand his in­cli­na­tion and poli­cies be­fore hir­ing ag­gres­sively this year,” said AG Rao, group man­ag­ing di­rec­tor at Amer­i­can staffing firm, Man­pow­erGroup.

If this was bad enough, get ready for lower in­cre­ments next year. Em­ploy­ees are ex­pected to see an av­er­age 10% in­crease in salary in 2017 -- lower than the 10.3% rise in the pre­vi­ous year, ac­cord­ing to the lat­est re­port by global con­sul­tancy Korn Ferry Hay Group.

GETTY IMAGES

The im­pact of note ban is bound to run deep

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