AN The recent economic slowdown has overturned the market which has affected many sectors leading to a meltdown. The manufacturing sector has been hit leading to job crunches; the production in the automobile sector has been stopped leading to laying off people in hundreds. Though experts claim that this is a temporary phase but since the business will take time to achieve its normal course, so will the job market.
AN Globally, there has been a massive shift happening with increasing unemployment on one hand and lack of specialised skill set on other. By 2030, the technological advancement will eat up approx 800 million jobs. The advent of AI and robotics will take the place of people all over the globe.
AN In India this is an effect of the global situation. Also the stringent procedures of the government have affected businesses to operate within the country leading to closure of small businesses. With demonetization and application of GST, many small traders have found it difficult to operate leading to unemployment. One of the many reasons can be cited is low liquidity which leads to low demands which in turn has a direct impact on production costs. With the increase in the production costs, businesses curtail expenditure on the same which results in laying off people thus increasing the rate of unemployment.
How HR should prepare well in advance for such massive job casualties?
Who do you think suffers the most during recession - employee or the employer?
AN The effect of the fall out between an employer and employee is the same during such circumstances. As much as the employee is suffering due to loss of job, the employer also suffers equitable set back.
AN There is not one particular sector or jobs which get affected by the slowdown. Some may feel that since the manufacturing sector is going down the road hence the workmen will be affected largely. Others may feel that the executives are the susceptible lot to succumb to such situations.
AN Labour reforms often protect the people from facing complex situation but in our country Labor laws can only help strata of people to carry on with complex situation like these. The reason is our increased population and fewer jobs. The government does not have stringent reforms for the entrepreneurs from taking hard action against their employees and the government does not support any schemes either to support people who are out of employment.