Letter to BS: India Inc staff addition in FY 18 slowest in three years

This refers to “India Inc staff addition in FY 18 slowest in three years” (November 9). The internal economic slowdown has definitely contributed to the situation especially during demonetisation when the non-availability of cash and restrictions on cash withdrawals led to the inability of employers to pay wages to their employees, who didn’t have access to electronic funding. This led to a fall in the labour force as it resulted in forced unemployment. The IT industry had also reached a temporary saturation point in its development due to slow economic growth. This was caused by a fall in the development of infrastructure and almost stagnant industrial activity. Inadequate expansion in other areas of the economy has led to a fall in its contribution to fresh employment.

 

The current oil crisis and depreciation in the value of the rupee against the US dollar have hampered imports and accordingly slow industrial growth thus creating a drop in fresh employment. Uneven costs and uncertain returns in international trade have further restrained the growth of fresh employment in the industry.

 

There is great scope to provide fresh employment opportunities in the financial sector despite lower salary payments than the IT industry. In the long run, the IT industry will show greater stability and support the overall economic performance of the country.

 

C Gopinath Nair  Kochi

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