IT sector job cuts: Are Infosys, Wipro, TCS really cutting jobs, or is it just fear-mongering?
In the midst of the filibuster about widespread job losses in India, here are some facts to ponder over…

- Jun 5, 2017,
- Updated Jun 7, 2017 9:40 PM IST
India is in the grip of the great jobs fear-mongering. At the core of this is the mis-informed impression that jobs in India have shrunk/are shrinking. That's far from truth. Yes, there's a neighbour here and a cousin there who has either lost her job or hasn't found a suitable job for a prolonged period of time but the truth is that the job scenario-though challenging--isn't as gloomy as it is being made out of be. Comprehensive data on jobs is notoriously patchy. But anything that is available points to the fact that India is still producing jobs, even though at a slower pace than 2 years ago. That effectively means that the overall job market in the country continues to grow, rather than shrink.
The other job loss fear stems from the advent of automation and artificial intelligence which are widely believed to be the biggest job eliminators of the future. But developing countries where per capita consumption is still low, will continue to be at an advantage over the developed world. Especially, in the manufacturing sector. Even though automation will ensure that the same job is being done by fewer humans, as technology takes over, but growing consumption will create demand for more factories, thereby creating more jobs.
Lastly, one needs to rely on evidence on the ground. If India's 700 universities and 35,000 odd colleges indeed produce 10 million graduates every year, our social fabric would have been torn apart if at least a vast majority of them didn't get absorbed gainfully, even if it was for self-employment. And sectors such as banking and financial services, IT/ITeS, automobiles, pharma, durables and FMCG have somewhat compensated for the loss of jobs in sectors such as real estate, construction and engineering.
Clearly, India is producing a significant number of jobs or self-employment opportunities but those numbers are not being captured entirely. Yet, India's prevailing and future job scenario is far from perfect. And unless the economy shows signs of revival, we need to be beware of the storm building up at our doorsteps.
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India is in the grip of the great jobs fear-mongering. At the core of this is the mis-informed impression that jobs in India have shrunk/are shrinking. That's far from truth. Yes, there's a neighbour here and a cousin there who has either lost her job or hasn't found a suitable job for a prolonged period of time but the truth is that the job scenario-though challenging--isn't as gloomy as it is being made out of be. Comprehensive data on jobs is notoriously patchy. But anything that is available points to the fact that India is still producing jobs, even though at a slower pace than 2 years ago. That effectively means that the overall job market in the country continues to grow, rather than shrink.
The other job loss fear stems from the advent of automation and artificial intelligence which are widely believed to be the biggest job eliminators of the future. But developing countries where per capita consumption is still low, will continue to be at an advantage over the developed world. Especially, in the manufacturing sector. Even though automation will ensure that the same job is being done by fewer humans, as technology takes over, but growing consumption will create demand for more factories, thereby creating more jobs.
Lastly, one needs to rely on evidence on the ground. If India's 700 universities and 35,000 odd colleges indeed produce 10 million graduates every year, our social fabric would have been torn apart if at least a vast majority of them didn't get absorbed gainfully, even if it was for self-employment. And sectors such as banking and financial services, IT/ITeS, automobiles, pharma, durables and FMCG have somewhat compensated for the loss of jobs in sectors such as real estate, construction and engineering.
Clearly, India is producing a significant number of jobs or self-employment opportunities but those numbers are not being captured entirely. Yet, India's prevailing and future job scenario is far from perfect. And unless the economy shows signs of revival, we need to be beware of the storm building up at our doorsteps.
Also watch: