Economy growing but layoffs still aplenty in India; Information Technology sector worst-hit, says report
Even as the economy grows, job layoffs continue to remain a 'commonplace' with IT industry employees experiencing more pain than the others
Mumbai: Even as the economy grows, job layoffs continue to remain a "commonplace" with the automation prone information technology industry employees experiencing more pain than the others, a report said on Friday.
The report comes amid fears of 'jobless growth' being witnessed in the country at present.
"Even as the economy improves, layoffs - due to cost cutting, reducing redundancies after a merger or acquisition, and restructuring events due to changes in the industry - remain commonplace," career transition company Risesmart said in a report after interviewing 1,000 executives.
"The survey concluded that employees in the IT sector experienced more layoffs in comparison to employees in other industries," a statement issued here said.
It, however, did not elaborate by quantifying the responses across sectors.
In May last year, the then Union labour minister Bandaru Dattatreya had confirmed fears of the 'jobless growth' by stating that the economic growth was not translating into rise in employment opportunities.
"The current growth is a jobless growth. Many European and Asian countries, including India, are facing it... growth is being reported but it is not reflecting in employment generation," he had said.
The government and the ruling party had later explained that jobs created in sectors such as tourism and aviation were not counted for the purpose.
In the statement, Risesmart said India has been one of the biggest employment creators globally but hiring has "plummeted" recently and the spectre of job layoffs is
hitting both big and small companies.
What go unnoticed are occasional blips - the layoffs - that are not statistically not as significant, but are imbued with sad stories of people.
World Bank says Indian economy may contract by 9.6% in 2020-21, estimates severe income losses in informal sector
In the rest of South Asia, the economic impact of COVID-19 has been somewhat less severe but still significant. Economies that depend heavily on tourism and travel have been especially hard hit
Anomalies in employment data should get addressed with the just-launched NSSO survey, Panagariya said