In the history of the world, whenever a worldwide economic crisis has been reported, the repercussions are explicitly observed in the employment process of every country. In the wake of the ongoing pandemic, the impact is predicted to be enormous enough to devour the existing jobs of thousands of employees in India and this will drive more uncertainty of jobs in the country.
Let’s discuss how the employer-employee relationship works during a crisis and what does the demand-supply of employment procedure signify!
During a recession period, the demand side, which engages in the hiring process of organizations, tends to curtail the recruitment due to the financial crisis for the smooth operational workflow.
For instance, if a company of 100 employees suffers a revenue shortage, it commences laying off the section of the workforce that falls under the non-essential operational flow. The rest of the essential employees are retained to keep the company functional.
Suppose there are 1000 people seeking jobs during this period and thus falling under the ‘supply’ category. The competition exponentially increases when there is an addition of the 1000 more unemployed people who just got laid off from their pre-existing jobs. Now there are 2000 people struggling for the few essential jobs that are still persisting in the companies. Here is when the trouble springs up for the unemployed sector of society.
Why do we need to worry?
The world faced a similar situation during the 2008 economic crisis (The Great Recession) when primary businesses were subjected to a downturn in their economic activities.
More than 8 million people lost their jobs globally.
Therefore, the Great Recession Period still marks the consequences on the economy since it has begun.
These graphs explain the difference between the economic impact on the year 2008 and that of 2020. The stark contrast between the two is clearly noticeable as the share market curve of 2020 seems to be much steeper than the curve of 2008. The curve might incline to be cyclical but the downturn is unfortunately inevitable. The 2020 recession is predicted to hit stronger than the previous one, which can lead to a vigorous impact on the rising unemployment of the country. It is probable that IT sector is to experience an abrupt economic drop in 2020 because the IT space in India has colossally expanded since 2008.
With the decline in the revenue, firms like hospital sectors, travelling industries, food & beverage industries are going to undergo immense impact on their economy. Firms like MakeMyTrip and Indigo have announced the slashes in the salaries of the employees due to the COVID-19 lockdown. The Operation Teams of the organizations will be largely impacted by the pandemic lockdown, but the tech teams of the firms are also predicted to be impacted likewise. However, the repercussions might get mitigated for the tech departments of Indian firms.
The gravity of the situation is to be realized as recently, MOODY’S has estimated India’s GDP growth to decline from 5% to 2.5%. As a consequence, lay off procedures will be on a constant rise and more people will start seeking employment. The competition is supposed to increase manifold as the freshers would have to compete with the experienced but unemployed people as well. There is a possibility that many companies might suspend Internship programs as a way to reduce costs.
What are the measures to be taken to combat the situation? Do we need to stop in order to escape from the crisis? Should we get demotivated and sit on our hands?
Learning from the History
History proves that a miserable crisis has always given birth to some significant inventions. Newton has been known to discover gravity during the times when there was a Great Plague hitting London.
The Great Recession or the Dot Com Bubble Burst have witnessed many companies springing up as stronger than ever, like Netflix, Citigroup, PayPal, Amazon, eBay, etc. These exemplary moments show that the tougher times are there to not lose hope but to skillify ourselves at each step.
Every Cloud Has a Silver Lining
In order to combat the Corona Virus Pandemic, we need to take preventive measures and never give up on the grave situation.
- Boost your Immunity by taking a balanced diet and intake of food rich in nutrients like Vitamin C, Vitamin E, and Zinc. Start your day with regular exercise.
- Follow a Schedule that incorporates all your daily routine and formulate a goal plan for 21 days lockdown period. Work rigorously on the objective to finish it before the deadline you have set for yourself.
- Choose Remote Freelancing work to amplify your experience as a programmer and to improve your resume. Get a similar internship experience by working remotely with the tech sectors.
- Up-skill your Knowledge by learning new concepts every day. Differentiate yourself based on skills to be industry-ready to compete with more people seeking jobs. You can hone your programming skills by joining Coding Blocks’ Live Classes to get a better user experience by bringing the classroom to your homes.
Coding Blocks’ Live Classes Program has been launched with an aim to cater to the needs of the students during these stressful times that will not lead to the compromise on their education. Our team believes that this is a crucial time to upscale the skills of the students so as not to let any crisis hinder their placements. The revenue of the Live Classes is also meant to run the operational workflow of the employees of our team.
We hope that the desolate times will soon come to an end and we all will fly out of our nests with stronger fluttering wings.
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