Indian factories shed jobs in November: PMI
Even though India’s manufacturing activity saw a rise in November, the industry as a whole saw a decline in the number of jobs and people employed in the factories.
New orders and higher outputs contributed to the rise in productivity, however, factories remain pessimistic about the future as they shed jobs for the first time since March 2018.
India’s economy is expanding at a slower pace than in the last six years and economists are concerned about the delayed recovery. If the economy is to generate enough jobs for the new youth joining the labor force, the economy needs to grow by eight percent every year.
The Nikkei Manufacturing Purchasing Managers’ Index rose to 51.2 in November from 50.6 in October 2019. While the PMI has been above the 50-mark for the past two years, the ongoing weakness in the economy with respect to other projections, as well, showing that factories are bound to face some challenging situations in the future of work. The state of the global economy and the burgeoning US-China trade war are not helping in the acceleration of economies the world over.
Even though the index that measures new orders rose to 52.0 in November from 51.3 in October, a sub-index that measures hiring among Indian factories fell below the breakeven point. The last time that this index had fallen below the breakeven point was in March 2018.
As the manufacturing sector continues to face challenges from an increasingly automated way of working, the traditional jobs are taking a hit. However, new types of jobs are being created in the sector which require a different kind of skill set. Going ahead in the future of work, the manufacturers in India are going to pay keen attention towards the improvement of the output in tandem with the pace of job creation.