New Delhi, Apr 17 () : India’s job market is in for trouble. Twenty-four lakh graduates are out of colleges every year but there are jobs only for ten lakhs.
Fifteen lakh engineers are being trained and even two big economies, USA and China put together do not have that many engineers. These qualified graduates and post graduates could be a problem, if jobs are not created, says a report.
According to a report, these engineers could end up doing jobs not suited to them and due to supply being more than demand, the wages would not increase.
In 2020, out of China’s workforce of 9.4 crores, an average age would be 20-24 years and in the same period and age group, India would have 11.6 crores. The average age of an Indian in that period would be 29, Japan 46, Europe 47 and USA will be 40 according to the International Labour Organization.
Information Technology will have an oversupply of engineers. IT companies are looking for engineers for analytics and BPO as well as infrastructure management. For four years, there has been a surplus of engineers.
With consumption theory of India not working and income level of earning members not going up, the purchasing power is down. If consumption is down and car loans and consumer loans’ demand go down, education loans have shot up ten times in a span of 7 years.
To add to IT job woes is the new immigration law that restricts companies sending workforce from India to their offices in the US. The cap on this and the stipulation that anybody coming from outside USA and working in the country should be paid wages on par with the US standards. This is applicable to even those coming on a short-term visa.
Nasscom, the IT trade body says that workforce going on assignments cannot be termed immigrants. The edge that companies like Wipro and TCS had was that its Indian workforce working in US offices were giving them the advantage to quoting low rates and profit margins.