Upskilling a strong rescuer amidst an erratic global environment.

 Impact of layoffs saga on the Indian economy –

Layoffs can be damaging psychologically as well as financially. The prevailing job uncertainties amidst massive layoffs saga is disconcerting. India’s labour market will be swamped by the rippling impact of recessionary threat in the developed nations. The plight of rising interest rates by worldwide central banks is casting shadow on the economic growth prospects. India’s job market resiliency despite economic challenges is a silver lining.

The mass layoff wave is hitting hard to offshore employees in tech MNCs and financial behemoths globally. The rise in the cost of borrowing, developing, and consuming is hurting the operational profit margin across companies’ balance sheets. In an effort to rein in multiyear high inflation, RBI has raised the cost of lending which fatigues economic growth and the jobs market rigor.

 Indian economy being a bright spot in a gloomy economic universe, demand for commercial real estate and grade A assets is on rise. The shift in manufacturing base to India in the wake of China plus one policy by any global conglomerates will give impetus to MSMEs and service industry. The robust infrastructure development and improved governance is attracting investment from the global communities. The strong performance indices of India’s capital market will continue to attract foreign investors, leading to rise in consumer’s discretionary income. The improved affordability quotient of India’s consumer base is driving sustained demand despite economic tailwinds. Hence, India’s GDP outlook is pegged stronger than 6 % in ensuing FY 2023-24.

The mass layoff may act as short-term contamination in homebuying rally in tech cities. But the long-term housing outlook is bullish on the grounds of stability and security the asset class offers in volatile times. Millennial homebuyers may feel the pinch of mass layoffs crisis and soaring inflation for stipulated time frame. The interest rate normalization is accrued in the upcoming fiscal year as pandemic tailwinds will wane-off.

India’s labour market to turn competitive as domestic and NRI talent pool will witness job rage.  NRI human resources in lurch if no sponsored employer found in 60 days window post struck by the layoff wave. Migration of laid-off Indian professionals back to native land will be an opportunity to hire cutting edge talent at competitive prices. The current layoff is part of the economic cycle and an act of course correction. We see a shift towards the Gig economy and constant upskilling will be the only rescuer in an erratic global environment.