Employment Crisis- An Overview

  • SumoMe

According to recent newspaper reports, job cuts and lay-offs have become the order of the day all across the globe. Companies have been down-sizing and employing cost-cutting measures across all sectors. In this scenario, it is becoming increasingly difficult for fresh graduates to find jobs. Campus placement cells are looking to attract new ventures to their campuses in a bid to recruit as many people as they can. However, with several big names in investment banks and private equity facing the heat due to the global meltdown, it is unlikely that fresh managers will be getting the kind of jobs that their seniors might have got in the last few years.

The current scenario is pretty similar to the one seen at the end of the IT boom. The IT boom initially created more jobs than what was expected. However, when the dotcom bubble burst, several IT professional with little or no work experience were left with few career options and little potential for growth. In the present scenario, fresh recruits in sectors like banking and finance are facing similar problems.

Although this is not the best time to be looking for a job, it is certainly ideal for entrepreneurs. Those interested in going for new start-ups should find it relatively easier to get in touch with prospective clients and customers. Besides, with the bearish outlook of stock markets in most countries, investors would be more willing to pay attention to new ideas. Although raising venture capital is always an uphill task for entrepreneurs, they will probably find it easier to find managers who are willing to guide them right now.

Entrepreneurship also requires an investment in terms of the entrepreneur’s time. Therefore, due to the gloomy scenario in job markets, entrepreneurs would be able to put in more time in their independent ventures right now.

According to a report published in Business Line recently, even the top MBA institutes in the country, including the IIMs, are looking to attract new companies to recruit their students. Therefore, it would not be wrong to expect that there will be several graduates in the Class of 2009 who would probably not get the kind compensation packages they deserve. However, it is important to remember that this crisis will affect job markets only in the short-term. Experts predict that the effects of the meltdown on companies and their employees might start abating by May 2010.Therefore, as of now, managers and employees must be prepared for a dry run in the short term. However, as we have observed after previous economic crises like the Asian crisis in 1997, markets do regain stability after a certain time frame. It is therefore important for prospective employees to hone their professional skills in the current slowdown, so that they are better prepared to face recruiters in the future.

Namrata Singh

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[Image source:http://www.sasinc.org/Images/EmploymentImages/EmploymentCollage.jpg]

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