|  |  |  |  | 

Business Exclusive Headlines News

Job market keeps sliding

Mumbai, Sep 16 () : Jobs are few and dismissals more, says a survey by Financial Express.

Close to two lakh jobs have been lost in the eight months of the fiscal. A 0.2 % drop between April-July in the manufacturing output and a 1.6 % drop in private consumption for the same period has forced corporate India to hunker down. The slowdown in the industry has meant large lay-offs.

A FE survey across select sectors, threw up a number of close to 2 lakh job losses in the last 8 to 10 months. For every one GDP % increase, it creates 8.5 lakh jobs and it was 9% and today it is 5% which means that 35 lakh jobs were less.

Automobile sector is going through a slowdown and only those with export markets are able to sustain and many announcing no production days to cut down inventory which is estimated to be around 1.2 lakh.

Around 14,000-15,000 temporary workers  have been losing jobs in the current downturn and in the automobile industry which include the ancillary manufacturers, the numbers will be far higher.

For every worker with an original equipment manufacturer (OEM), seven workers work across the supply chain. Similarly, when a worker is retrenched in the OEM, 7 are sacked in the supply chain.

Indian auto majors Mahindra and Mahindra (M&M) has been running its plants at 30% less than average capacity utilization and at Tata Motors, it is lower by 40%. Bosch, the auto parts manufacturer in an announcement on Friday indicated the situation was not getting worse and added that it would suspend manufacturing operations at its Nashik plant for three days a week to avoid an unnecessary pile up in inventories.

Totally, between supplier of parts and OEM there has been 40% reduction in jobs. With 10 lakh workforce, the 40% cut stands at 3-4 lakh. Slow sales in the automobile sector is reason for the cutback.