Inflation to dent hiring prospects in India

"Due to rising inflation there would be negative impact on financial sector, manufacturing sector and the overall job market," global staffing services firm Manpower India Managing Director Naresh Malhan told PTI.     

Moreover, any hike in salaries would not be that much beneficial for employees as the increase would largely be eroded by the rising prices of commonly used items, experts say.     

"The country is projected to witness an average increase in salary bills of around 12-13 per cent," global HR services firm HayGroup's Practice Leader Mark Thompson told PTI, adding "if inflation is taken into account, this still represents quite a reduction in the cost of labour in real terms compared to last year."     

The wholesale price-based inflation spurted to 11.05 per cent for the week ended June 7. Inflation has risen rapidly by 441 basis points since January 2008.     

Manpower in its latest employment outlook survey had rated India as the most optimistic nation for hiring in the world.     

Thompson added "high oil prices are here to stay, there will be a big impact on economic growth throughout the world at least until we can adjust to the new regime and adapt to using less oil-based products."    

Industry experts believe high crude oil prices and rising inflation levels would reduce growth rates in the country and therefore would lead to less hiring than would otherwise be the case.