At times, it’s a bolt from the blue. At others, it’s the culmination of a longdrawn deliberation. Either way, job loss disrupts life. Couched in different words—‘sacked’, ‘laid-off’, ‘pink slip’, ‘fired’—it translates to the same after-effects. It impacts an individual not just financially, but also emotionally and psychologically, affecting his financial goals as well as relationships.
Current employment scenario
While there is no immediate threat of massive job cuts of the scale witnessed in 2008-9, there are visible signs of despair. Globally, MNCs have been announcing cuts for the past few months, with Cisco axing 14,000 jobs, Microsoft 4,700 and IBM 5,000 staffers.
High & low: Employment growth in corporate sector in 2015-16
Industries with growth above 10%
Industries with negative growth (%)
Source: CARE Ratings. The study analyses employment data across various industries and is based on a sample of 2,112 companies across various sectors for 2014-15 and 2015-16.
In India, the impact began small, with startups like Flipkart and Ola letting go of several hundred staffers, but is now becoming more pronounced due to demonetisation. “The impact of demonetisation on hirings in the formal sector is about 5-6%, with the worst affected being the small manufacturing units and SMSE sector,” says Neeti Sharma, Senior Vice-President, TeamLease. “But it may be a short-term impact, with the situation likely to normalise in about six months’ time,” she adds.
Expected salary hikes in 2017
