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The International Monetary Fund has named a coming couple of months as 'gloomy' for economic growth. Many nations have witnessed the first stage of a collapsing economy. As for India, the downfall rates are not the same but at the same time, the impact cannot simply be measured by the activity of the Indian industries. Thousands of Indians rely on the organisations of the west for their jobs and income. The ever-increasing layoff numbers have put this population in the predicament of finding employment.
Unemployment Rates
The current unemployment rate in India increased to 8.3% in 2022. The last two months of 2022, saw a surge in the unemployment rate causing a wave of trauma throughout the nation. This rate primarily saw a surge due to the layoffs in India. While the government is trying to make sense of these structures and presumably bringing in new reforms in the Budget 2023, it is hard to see a brighter future by merely relying on these facts.
The sad story of Unicorns?
The pandemic was the advent of smart growth in India. Many new start-ups rose to fame and saw a stable growth rate while the already existing start-ups entered the world of unicorns. The unicorns expected steady growth and the hiring rate in these companies was very impressive. For a brief period, India thought we might turn into a start-up economy altogether and we are sure we still might, it's time to put a hold on the excitement for now.
Start-ups showed the highest number of layoffs in the past few months. This might lead to a sudden downfall for most start-ups. When big brands like Byjus, Unacademy and Cars24 topped the numbers in layoffs a different reality came to picture. Needless to say, the start-ups that had just started to create a virtual business community, might have shut down for the time being.
Now that we have addressed the current situation, the numbers are indicating that nothing positive can come from this situation. However, we disprove. There is a light shining at the end of the tunnel called layoffs, here is what you need to know about seeing a positive picture.
The other side of the story
Kickstarting the year on a positive note seemed difficult for all who were scared to lose jobs and had already lost their jobs. But we are here some positives in a collapsing economy and while these might be just a few predictions you might be able to see a growth rate that runs on merely these trends.
Freelance Economy
Many at this point have lost jobs, the west organisations are collapsing too. However, even at the collapsing prime, the companies need work. To be fair the companies came out and laid off a large chunk to reduce costs yet there is still ample work that the companies need to get done. The goal is simple, go for freelance work and explore. When one company cannot match your salary expectations, it is never an issue to take to contract jobs and work with multiple.
The opportunities will not come simply from the Indian sector markets, the offering will be vitally from the west. The companies which are seeing collapse will now seek contract-based assignments. Third-world nations like India will be the centre point of all these outsourcing projects in the new world due to low costs and skilled labour.
Upskilling
There might have been thousands of tech layoffs, but who said hiring completely stopped? Organisations are going through the phase where they seek employees who have upskilled in a manner that they require less time of training and can bring more value in terms of output.
This time is all set to push the youngsters to learn beyond the average scope of a job. New skills with an upgraded resume are the key to getting settled employment. The companies are in the benefit too, with the fear of layoffs many have already prepared their steady route to upskilling. These changes will build a highly skilled and more efficient workforce.
Mergers and Acquisitions
Let’s delve into the idea of mergers that might make making year 2023 the start of a journey into big and small business collaborations. While many are planning to let go of the very premise of new business ventures, others are trying to figure out the structure of their business growth. Several companies are planning to acquire start-ups who had scope but are not able to cope with linear economics. This might be the era of new business collaborations. Job-wise, it can be a positive too and economy wise it will simply take us towards a better shift.
Creating a balance
Layoffs in the initial stage always seem drastic and so they are, however, we as an economy are not under the direction of this recession. Numbers might have been bleak but balanced themselves very quickly. We cannot have high hopes and seek tremendous growth but we are surely looking at a positive pattern here.
While thrive is not the word we can use to describe the coming year, gloomy isn’t the word we will use either here. The goal is to seek the balance between positives and negatives. Layoffs may lead to a short period of unemployment growth, we can anticipate that these numbers will balance themselves in the coming quarter. Building a business network community might be difficult during this time for some, yet the tech growth and new market strategies are made to be experimented with.
With the staunching growth and unrealistic change, the market is ready for a rollercoaster ride. It might have its highs and it might have its lows but with the many trends of the global market, one cannot simply follow presumptions.
