New Delh/Mumbai: Prospects of bagging a job in a coronavirus struck India appear gloomy, going by latest surveys and media reports. On Tuesday, at least two reports indicated the unrest in the employment sector in India.
An employment outlook survey by staffing firm Manpower Group said that hiring plans were the weakest in 15 years. Only five per cent of employers were looking forth to hike in payrolls during the third quarter of the current financial year. The study evaluated responses from some 34,000 employers across 43 countries and territories to forecast labor market activity in the July-September quarter of 2020. In India, the survey involved nearly 700 employers across the country.
"Corporate India is rationalising its workforce in response to the economic slowdown. It is indeed a 'wait and watch' game as organisations are gearing up for the post lockdown era where they anticipate an upsurge in demand," Sandeep Gulati, Group Managing Director with the group said in a statement.
"India is optimistic and the government's stimulus economy package may boost the economic activities across sectors," Gulati said.
According to this study, adversely impacted sectors in India include service sector and manufacturing sector with indicated hiring intentions of +4 per cent and +2 per cent respectively, said the survey, adding that when compared to the previous quarter, these sectors have a noteworthy decline of nine and seven percentage points respectively. Net Employment Outlook is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location in the next quarter.
The encouraging news, however, is that India with an overall seasonally adjusted outlook of +5 per cent features among the top four countries out of 44 that projected a positive hiring trend. The other three are Japan, China and Taiwan who have a Net Employment Outlook of +11 per cent, +3 per cent and +3 per cent respectively for Q3, 2020.
Another report that indicated more contemporary trends is the Naukri.com hiring indicator which slumped by 61% during May. The portal observed a consecutive month of decline in hiring.
Surprisingly its not jobs in hotel, restaurant, travel and airlines industries (-91 per cent), followed by retail (-87 per cent), auto/ancillary (-76 per cent) alone that declined, even Banking and Financial services did (-70 per cent). This despite Bankers being referred to as Coronawarriors and a sector busy supporting the economy during the lockdown phases.
"The extension of the lockdown has resulted in a continued decline in hiring activity for the third consecutive month," said Pawan Goyal, Chief Business Officer, Naukri.com.
In a recently conducted survey with recruiters and HR heads, about 39 per cent said that critical hiring is still taking place and we are seeing the same on the site with industries such as pharma, healthcare, insurance and IT-software posting jobs during the lockdown.
Region wise the decline was more accentuated in metros such as Kolkata which reported a decline of 68 percent/ Delhi (-67 per cent) and Mumbai (-67 per cent) followed closely.
Another recent survey by Naukri.com revealed the worst fears among job-seekers - one in 10 jobseekers confirmed having being laid off and approximately three in 10 fearing job-loss.
A week ago, a survey by Azim Premji University showed how the double-whammy of coronavirus and lockdown may have resulted in job losses and even lower food intake. Livelihoods are devastated at unprecedented levels, observed the study, as it went on to elaborate on vulnerable informal and migrant workers.
• For the survey in Bihar (Rural) with 173 respondents, it said nearly half (46 per cent) of the respondents lost employment. Casual wage workers were more severely affected, with eight in 10 casual workers losing jobs.
• More women (55 per cent) lost employment compared to men (35 per cent). More SC/ST workers (58 per cent) lost employment compared to OBC workers (35 per cent). Nearly seven in 10 households had to reduce their food intake during the lockdown.
• The SC/ST households were the worst affected in terms of food intake as 85 per cent of them were consuming less food than before.
• Nearly two in 10 vulnerable households did not receive rations. More than half (56 per cent) of the vulnerable households did not receive Jan Dhan cash transfer. Four in 10 vulnerable households did not receive any cash transfer, the survey said for Bihar.
• Nine in 10 farmers (89 per cent) were not able to harvest or sell their produce at full price. Four in 10 salaried workers (42 per cent) were not paid salaries or faced pay cuts during the lockdown.
• Six in 10 vulnerable households did not receive Jan Dhan cash transfer and more than half (54 per cent) vulnerable households did not receive any cash transfer.