Hiring Blues: White-Collar Jobs Slide Continues In India Amidst Global Recession Threat

According to data compiled by LinkedIn, the number of active jobs has been on the decline for over five months now.

New Delhi: Amidst several advanced economies staring at a possible recession, India’s white-collar job market is witnessing an ongoing slide in hiring activity. According to data compiled by LinkedIn, the number of active jobs has been on the decline for over five months now.

This slight in the white-collar job market comes at a time when many global economies are staring at a possible recession. The Economic Times citing the reports put together by Xpheno, the job market in September saw a slide of 20% from August. This was recorded as the steepest month-to-month fall in 17 months. The total number of vacancies came down to 210000 in the month of September. In May the total number of vacant positions was recorded at 330000.

According to the experts, this dip is not similar to the previous slides. Previous dips and recovery were very quick but this time around the market is witnessing a sustained fall over months. Economists and job market experts said any sector that has a connection with global demand will see a hiring moderation in the months ahead.

The Chief Economist at Mahindra Group, Sachchidanand Shukla, while speaking to ET said, “global recessionary fears are becoming more evident in data and sentiment.” “Anything that has a linkage with global demand… will see a moderation or decline in hiring activity in the months ahead, be it IT services or textiles, gems and jewellery, engineering goods in manufacturing or pockets of real estate in IT hubs like Bengaluru or Gurgaon that are directly impacted by the US, EU slowdown or recession.”

“However, sectors that do not have direct linkages – such as BFSI (banking, financial services and insurance), where balance sheets have been healthy; telecom, which is preparing for 5G rollout; or automobiles, which has seen record order book volumes – will require adequate manpower to service the rising consumer demand,” he said.

Earlier, the IMF warned of a recession threat looming large due to the shocks from the pandemic. The World Bank also reduced India’s GDP growth rate to 6.5% from an estimated 7.5% for the year 2022-23.