First-quarter job losses touch 1.71 lakh

Unemployment estimates for the first quarter of the financial year show a total of 1.71 lakh job losses, and the spectre loomed over most sectors, according to a study by the Labour Bureau. Buttressing this is data that shows withdrawal requests from the Employees’ Provident Fund Organisation (EPFO) between April and June touching a record 31.51 lakh, indicating large-scale layoffs as well as a severe cash crunch among workers.

The textiles industry was worst hit, shedding 1.54 lakh jobs, followed by IT/BPO (34,000). The gems & jewellery sector reported 20,000 job losses, although, ironically, some employers reported worker shortages. Overall employment across the eight sectors surveyed—including metals, leather, automobiles, transport and handloom/powerloom—dipped by 1.31 lakh.

Exporting units remained badly hit. Across all sectors, employment in these units fell by a sharp 1.67 lakh

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Global meltdown affects banks in Bric nations

Banks globally have found their bottoms ripped off by the global meltdown Bank in emerging economies have have also suffered. It has, in fact, been an eye-opener for these countries’ banking fraternity.

ICICI whose market capitalisation fell by8.6% and HDFC Bank,which fell by 6%, were among those Indian firms listed on American bourses that incurred loss to the tune of $10 billion during the past one week alone. Now the most important lesson to be learnt for the Bric countries’ banking community is be conservative in that follow strict rules while disbursing sub-prime loans and have thorough due diligence before finalising the loans. Another message for these countries from the US credit crunch may be to go aggressively for mutual cooperation.

Yet another major positive development for highly populous countries like India and China can be focus more attention to the domestic consumerism and generate more employment to their skilled youth which is coming up in the form of demographic dividend.

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