Job Crisis in 2020???

  Topic -Job Crisis in 2020 ???

 

Are we going to face Job crisis in 2020 ??? This is indeed a big question!!! No doubt extreme stress will ease but it will not be structural!

But the good news is that at a macro level the economy needs to grow near double digits to absorb the 10-12 million joining the workforce every year .Such a rebound from around 4.5% growth is not possible now, in 2020 or a few years after that, however the short answer is No, there are no Job crisis in 2020! One can say the prospects of 2020 shows an end to the job loss story across major sectors.

 

However white collar-high skilled sectors have always been better off compared to the blue collar semi skilled or unskilled labour jobs also including the rural economy .The greatest impact in the slowdown in the economy are seen in the automobile sector to marked deterioration in the construction and exports sectors, and then through the demand compression for agro-industries. The employment numbers are always infrequent and unreliable.

 

According to a report published by the World Economic Forum Demographic changes and technological advancements may lead to the net loss of 5 million jobs by 2020 and total, the report estimates that a total of 7.1 million jobs could be lost, the majority of which will be white-collar office and administrative jobs.

 

What gives us hope that 2020 will be better in terms of jobs??

 

The economy has likely hit the bottom of the barrel and is expected to start to lift, though at a slow pace which means this will stop the stress in jobs seen this year.

One of the biggest job creators is the construction domain and we can see a continuous government effort to revive it.

 

 

Thirdly, if some progress is seen in the US china trade dispute, there is a huge scope that global trade may begin to recover which will result ingiving some support to Indian exports.

 

The Non-banking financial companies (NBFCs) are facing a crisis, particularly the smaller ones that are struggling with asset-liability mismatch amid corporate governance issues. This crisis are expected to get resolved soon which will encourage better flow of credit and that will definitely lift demand and boost investments.

 

Lastly, the budget will provide some sort of fiscal stimulus that lifts sentiment of the overall market thus leading job creation.

Therefore though 2019 has been extremely tough on the Indian economy or for that matter Global economy,2020 has all the signs showing for a big revival.Here s hoping for a great year ahead and on that note wish all our readers A Happy New year!!!!!