Rat race gets tough, inflation dents hiring prospects

DREAM JOBS: The ripple effects of rising inflation have started showing on the job market.

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Keywords: Manpower India, Inflation

New Delhi: The ripple effects of rising inflation have started showing on the job market.

The companies impacted by high input costs have started cutting back on hiring. A few weeks back, India was rated as the most optimistic nation for employment globally.

However, now as India is hit by surging prices, it seems that the double-digit inflation has dented hiring prospects in the country.

''Due to rising inflation, there would be negative impact on financial sector, manufacturing sector and the overall job market,” says MD, Manpower India, Naresh Malhan.

Companies across sectors have stopped recruiting new people and begun resorting to measures like minimising work force and even sacking under-performing employees.

Sectors such as retail and FMCG, which created huge employment demand in the last couple of years, are likely to see slow down in the hiring process.

Industry experts say they can't continue increasing cost of the products, as that would impact consumer demand.

“Input costs are touching the sky, so, obviously hiring will get impacted,” says MD, Subhiksha, R Subramanium.

The IT companies are facing high inflation coupled with the US recession. Experts are of the view that if the inflationary trend continues it would also reflect on increments.

It is no wonder that most of the workforce produced by India wants to work abroad. The latest survey done by Manpower India in 27 countries shows that India sees the third highest brain drain.

“Brain-drain is on a high in India,” says MD, Manpower India, Naresh Malhan.

Indian employers have fewer jobs to offer but the salaries they offer are not attractive enough to bring the offshore talent back home.

As for the jobseekers in the country, the rat race seems to have just got tougher.