New Delhi: Amid several advanced economies eyeing a possible recession, India’s white-collar labor market is witnessing a continued decline in hiring activity. According to data compiled by LinkedIn, the number of active jobs has been declining for more than five months now.Also Read – Global Recession Reality Check: “The Worst Is Yet To Come” Opine Top 7 Global Economists
This slight decline in the white-collar labor market comes at a time when many global economies are pricing in a possible recession. The Economic Times quoting reports compiled by Xpheno, the labor market in September was down 20% from August. This was recorded as the largest month-over-month decline in 17 months. The total number of vacancies fell to 210,000 in September. In May, the total number of vacancies was recorded at 330,000. Also Read – Recession fears rise as poll finds 86% of global CEOs anticipate one next year
According to experts, this dip is not similar to previous slides. The previous lows and recovery have been very quick, but this time the market is in a sustained decline over the months. Economists and labor market experts have said any sector with a link to global demand will see a moderation in hiring in the coming months. ALSO READ – Amid recession fears, this firm is asking 100 Indian employees to quit; Revoke letters of offer. Details here
Mahindra Group Chief Economist Sachchidanand Shukla in an interview with ET said “global recession fears are becoming more evident in data and sentiment.” “Anything related to global demand… will see a moderation or decline in hiring activity in the coming months, whether it’s IT services or textiles, gems and jewelry. , engineering assets in manufacturing or pockets of real estate in IT hubs like Bengaluru or Gurgaon that are directly affected by the US, EU slowdown or recession.
“However, sectors that do not have direct links – such as BFSI (banking, financial services and insurance), where balance sheets have been healthy; telecoms, which are preparing for the rollout of 5G; or automobiles, which have recorded record backlog volumes – will require adequate manpower to meet growing consumer demand,” he said.
Earlier, the IMF warned of an imminent threat of recession due to shocks from the pandemic. The World Bank has also cut India’s GDP growth rate to 6.5% from an estimated 7.5% for the year 2022-23.