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Indian job market better off than western countries

Jul 01, 2009 11:45 PM IST Business Business

New Delhi: The global economic slowdown has also led to many job losses around the world. While India is better off than western countries, people have still suffered immensely. Job loss is one of the worst fallout of any economic slowdown. What began as a housing mortgage crisis in the US last year quickly sipralled into a global economic meltdown and from September 2008 companies across the world began downsizing their workforce to cut losses. Citibank cut 50,000 jobs globally; British Telecom cut 10,000 while Hewlett Packard cut 24,000 jobs. India too felt the tremors with close to 50,000 laid off in a span of two months, according to executive search firm Redileon Search Partners. Sectors that have witnessed the axe include real estate and construction whic saw 79 per cent cut in its workforce. Job is export and trade, too, are down by 79 per cent while IT and hospitality sectors have witnessed a dip of 50 per cent. Banking and financial sector saw job cuts by 22 per cent. But numbers alone don't explain the full story. ''One afternoon when I went to office… I was suddenly called by the editor and all of a sudden he said that you have to go,'' says Barid Baran, who worked as corporate communication manager. Baran lost his job five months ago with a national newspaper. He now has a job but not at par with his expectations. Many like Baran understand that choices are limited for job seekers. "The organised sector job creation is a cause of great concern. On one hand the demand has got suppressed... on the other hand supply has increased," claims Pandia Rajan, Managing Director, Ma Foi. But India's job scenario is not as depressed as many other countries According to Human resources consulting and outsourcing company Hewitt Associates less than 16 per cent of companies in India are considering retrenchment. In fact more than 60 per cent are still hiring and nine out of 10 companies are still giving promotions. With a few days left for the Budget all eyes will be on Finance Minister Pranab Mukherjee to see what he does to boost job creation in India. (With inputs from Sonal Joshi)