Approx 60,000 contract workers lost jobs in India’s IT sector: Report

- Advertisement -

According to a recruitment body, approximately 60,000 contract workers outsourced in India’s information technology (IT) sector lost their jobs in the year ending in March. The decline in job opportunities for flexi workers hired through contractors by companies was about 7.7% compared to the previous year.

Lohit Bhatia, the president of the Indian Staffing Federation, which represents more than 120 recruitment agencies in the country, noted that this reduction in IT employment growth reflected the global slowdown in IT hiring. However, Bhatia mentioned that the manufacturing, logistics, and retail sectors continued to experience strong hiring, thanks to domestic consumer demand.

The IT sector, valued at $194 billion, played a vital role in facilitating the adoption of online shopping and remote working practices during the pandemic. However, it is currently facing a slowdown as employees are returning to physical offices and the Russia-Ukraine conflict is impacting spending from European clients. Analysts from JP Morgan recently warned that rising inflation, supply chain challenges, and the effects of the Ukraine war would bring an end to the growth boom that India’s IT services experienced during the pandemic.

- Advertisement -

Bhatia stated that the hiring of flexi workers in the IT sector decreased by 6% quarter-on-quarter during the March quarter. He also mentioned that the hiring of contract workers through third-party vendors may remain weak in the software industry for the next few quarters. Furthermore, India’s unemployment rate in April increased for the fourth consecutive month to 8.11%, as reported by the Centre for Monitoring Indian Economy (CMIE), a think tank based in Mumbai.

The Federation revealed that the overall demand for flexi workers had also slowed down in other sectors. In the financial year 2022-23, around 177,000 jobs were created through vendors, compared to 230,000 jobs in the previous year. The total number of flexi workers hired through vendors in Indian companies has reached 1.4 million, with approximately one-fourth of them being women.

- Advertisement -

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Huge rush of customers in SBI, Women stand outside SBI since Night for KYC

Women stand outside SBI from 2 am at Night for KYC

ICICI Bank Manager accepts he conducted Rs 12 crore fraud by forging customer’s signature

ICICI Bank Manager accepts he conducted Rs 12 crore fraud by forging customer's signature

Standard Chartered Bank ordered to pay compensation for not updating CIBIL score of loan borrower

Standard Chartered Bank ordered to pay compensation for not updating CIBIL score of loan borrower

Retired Judges get only Rs.19000 pension, Court asks Govt to increase pension of Judges

Supreme Court asks Government to increase pension of retired Judges

CBI Court sentenced UCO Bank Manager to 5 years Jail

CBI Court sentenced UCO Bank Manager to 5 years Jail

PNB Bank union writes letter to PM Modi to introduce five day banking

PNB Bank union writes letter to PM Modi to introduce five day banking

What happened to Nithin Kamath, CEO of Zerodha?

What happened to Nithin Kamath, CEO of Zerodha?

SBI projects 14-15% loan growth, Read what SBI Chairman Dinesh Khara said

SBI projects 14-15% loan growth, Read what SBI Chairman Dinesh Khara said

Acid attack on Bank of Baroda Female Manager, Case transferred to Allahabad Court

Acid attack on Bank of Baroda Female Manager, Case transferred to Allahabad Court

High Court orders RBI to pay compensation for denying maternity leave of Female Employee

High Court orders RBI to pay compensation for denying maternity leave of Female Employee