COVID-19 and Jobs: Do Companies still Recruit Professionals?

Recent Media reports have revealed that only around 5 per cent of Indian companies are planning to hire in the next three months. Companies have taken this decision in order to take necessary steps during the post lockdown phase and deal with the impact of the pandemic. 

According to the Manpower Group Employment Outlook Survey, the net employment outlook stood at 5 percent for the July- September quarter, which is the weakest in 15 years. Employers in manufacturing, services and wholesale and retail trade are most likely to be affected.

“While 5 per cent of employers anticipated an increase in payrolls, 2 per cent expected salary cuts, and 47 per cent forecasted no change in salaries in the second quarter. The strongest hiring pace is recorded in the medium-sized organizations followed by the large-sized and small-sized firms, the survey said. The survey also underlined that the employment generation will depend on the demand generation in the new normal,” Financial Express cited in its report.

India’s unemployment stands at around 24%. On one hand migrant labourers are suffering to secure jobs, whereas on the other hand, salary cuts and layoffs has become the new normal in corporations. The Purchasing Managers’ Index (PMI) for the manufacturing and services sector has also highlighted that the employment condition in India is weakest at this point due to the lockdown and the recovery is likely to be slow.

Nevertheless, Japan and Taiwan might hire more employees. Outlooks from employers in Japan and India rank as the strongest at a global level. Since, India is stepping out in a phased manner, the number of jobs is also increasing.