Sunday, December 07, 2008

11 weeks of jobcuts....Is there light?

In the 11 weeks following the fall of Lehman Brothers, the severe financial turmoil has seen an unprecedented loss of jobs across the world-encompassing a wide spectrum of industries.

As a recruiter -who believes in the India story, I refused to believe that hiring in India would be affected !!

How miserably wrong I was!!?Day after day, we kept reading about hiring freezes, job cuts, layoffs, cost cutting measures, deferred salary payments, apart from some companies encouraging sabbatical , and in the recent past, high profile auto companies shutting down plants for 3-15days to cut down production!!

Less people are being hired but people are still being hired. There seems to be a distinct pattern of hiring emerging in the recent past :

-"Cash rich" companies funding their own growth-ie those who do not depend on 'investors'!

-Small & Medium enterprises are exploring and attracting good talent (who, in good times would have flocked to MNCs and large companies!).

-Some innovative and nimble companies embarking on business plans leveraging on the 'sudden availability' of 'hitherto inaccessible talent' eg KPOs hiring equity reseach & investment banking professionals.

And yes, on the supply side, there is an increasing inertia among 'passive job seekers' to make 'the move'-as the current market sentiments do not encourage a flamboyant hike in salary while changing jobs.

So, its all happening now..and it is anybody's guess what will happen in the following weeks!!

Amidst all this, there is a glimmering ray of hope, in the various forms of financial stimulus by the governments across the world - be it putting in fresh money into a crisis-ridden institution, bringing them under the government's fold or other fiscal measures.

Just review the events over the latest weekend:

-The Indian government on Sunday announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy, hit by the global financial crisis.

-The US President-Elect Barack Obama's recovery plan aims to save or create at least 2.5 million jobs.

-German upper house approves $40b economic rescue package .

-Hong Kong's government aims to create 250,000 jobs by launching 10 big infrastructure projects in 2009

Is the dawn nearing?

2 comments: said...

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