The monthly Consumer Confidence Survey for September conducted by the Reserve Bank of India highlights the concern of Indian households regarding employment and overall economic situation.
More than half of the respondents (52.5 percent) felt the employment situation had worsened. Further about 33.4 percent believe the situation would only get worse in the coming year.
The survey also revealed that income for about 26.7 percent respondents has decreased. However, a majority (53 percent) expect an increase in income in the coming year. This could mean they are more hopeful for the future and anticipate the job scenario to improve.
The Indian households don't display a positive sentiment for the entire economic situation as well. 47.9 percent of the households surveyed felt it had worsened and 31.8 percent predicted the situation to worsen further in the coming year.
The survey was conducted in 13 major cities including Delhi, Mumbai, Kolkata, Chennai, Bangalore, and Hyderabad and surveyed 1,592 households. This RBI survey emphasizes the current economic slowdown India is going through. Many industries are struggling. Major industry leaders are cutting jobs. In India, a few sectors like the automobile industry are dangerously close to recession. Approximately two lakh jobs have been cut across automobile dealerships in India in the last three months as vehicle retailers take to reducing manpower to tide over the impact of the sales slump, as per the industry body, the Federation of Automobile Dealers Associations (FADA). Further, Parle Products Pvt Ltd, one of the largest biscuit makers in India, shared its plan to cut 10,000 jobs across the functions amid slowing economic growth and falling demand in the rural belts of the country.
The government is trying to mitigate the economic crisis and recently has taken some measures. However, the road is still long and it probably needs to pay more attention towards improving the economy. Businesses meanwhile can look for ways to help their employees feel more secure about their jobs. Effective communication is extremely crucial in these challenging times. Further the employers who are looking to cut jobs should come up with a plan to safeguard their employees interests. Prepare them for the transition and support them to ensure their smooth exit.