Developments in the job market point to increased cautiousness

The Indian economy is showing signs of deceleration, with growth in GDP and industrial production slowing down. Elevated inflation levels for a prolonged duration and the high interest rates are the two biggest factors affecting the growth momentum currently. The heightened financial and economic uncertainties in advanced economies have also dented business confidence levels. The gloomy economic condition has significantly impacted the pace of job creation in a host of sectors. The Naukri Job Speak index for Oct-11 witnessed a 3% decline in recruitment as compared to the previous year. However, the three-month moving average of the index continues to display positive trend in hiring activity.

 

A detailed analysis of the Naukri Job Speak index for Oct -11 reveals that companies across all key industry sectors have been hesitant to hire additional workforce owing to growing downside risks to growth in Europe and US and weakening domestic demand. The sharp dip in job creation within the Auto, Construction and Banking sectors is testimony to deteriorating labour market conditions. Developments in the job market point to increased cautiousness from businesses with regard to recruitment decisions. Hiring is likely to be depressed in the forthcoming months as companies struggle to cut overhead costs. The future outlook for hiring depends heavily on how well corporate profits hold up and global economic activity gains momentum.

 

 

News & Trends

           

            Netherlands-based Royal Philips Electronics, the consumer electronics company is planning to cut 4,500 jobs globally. The move is a part of a cost saving programme where the company plans to save around US$ 1 bn (800 mn Euros).

 

            According to a latest Supreme Court ruling, employees of a liquidated company are entitled to first preference of provident fund dues over arrears due to banks, financial institutions and the government. The apex court passed this ruling while upholding the Employees Provident Fund Commissioner's (EPF) appeal challenging the concurrent findings of the Company Law Board and the Bombay High Court.

 

            The unemployment rate in the USA remained unchanged at 9.1% during the month of Sep-11 over Aug-11. On a y-o-y basis, the unemployment rate declined by 0.5 percentage point. The total number of unemployed persons stands at 14.0 million. The unemployment rate in the UK for the three months to August 2011 was 8.1% of the economically active population, up 0.4 on the quarter.

 

 

Courtesy: Naukri Edge