With roughly 55 percent of India’s population of 1.2 billion made up of people aged 24 or younger, India was viewed as a country with a massive demographic advantage. Unfortunately, the global slump has turned the advantage into a big disadvantage.Indiaâ€™s economy will probably grow at the slowest pace since 2003 as a global recession cuts overseas orders and domestic demand wanes.It is is expected to expand at less than 6 percent in 2009-10, after recording average annual growth of more than 9 percent in the previous three years.
Here are few sectoral news snippets I read recently (and my translation pertaining to employment)
” Industrial production growth has already decelerated to -0.5%Y during the three months ended February 2009 from a peak of 13.6%Y in the quarter ended January 2007 “
TRANSLATION : Manufacturing jobs are in a disarray. Less additions (or no additions) are seen in 2009-10
“Banks were aggressive in disbursing credit at unusually low rates to marginal borrowers at cycle-peak GDP growth, they are now facing a rise in non-performing loans (NPLs). Expect banks to remain risk-averse, resulting in credit growth slowing to below 10% for 2009 -10”
TRANSLATION : Banking and Financial Services jobs are going to have lowered additions in 2009-10
“None of the IT services firms is hiring and Wipro is not an exception. We will not be hiring till demand picks up. While we will honour all offers that we have made to campus recruits in 2008-09, there can be some delay in bringing them on board,” said Pratik Kumar, EVP – HR , Wipro
TRANSLATION : IT sector is now a weakling. No new additions required for 2009-10
This academicÂ year more than 1 million people are expected to graduate from colleges (in india).Â Their employment opportunities are grim in the near future.
- Coming Unemployment Problem - April 22, 2009
- Valuation - April 5, 2009
- Medical Tourism Opportunity - August 20, 2008
I am not sure the problem is so serious. We in Elements – which is a pre-hire training school – have recently bagged an order from clients in BPO, Healthcare and education space for 2000 jobs. Genpact for example is hiring 10,000 people this year, same as what they hired last year. Export services based sectors and financial institutions are facing a slump led by global meltdown, but beyond the metros life is largely as usual. In fact, “employability” (attitude, english, grooming, corporate awareness etc.) is a bigger challenge that players like us are trying to overcome.