Is bad time just round the corner.....?

Dear Friends,

I was going through some of the news doing rounds in the industry and suddenly thought, is bad times for the Industry is just round the corner or it would pass away without effecting much? I am sharing those news with you all and would request your views on the same.

India Has Seen Jobless Growth, Says Top Adviser

India may have grown at over eight percent, but a top adviser has expressed concern over the "stagnant employment situation", saying the country with 40 million unemployed people witnessed "jobless growth" during the Eleventh Five Year Plan period from 2007-08 to 2011-12. "The only explanation for an almost stagnant employment situation is simply that not enough jobs are available in the economy, even with an eight percent plus growth rate," National Advisory Council member NC Saxena told in an interview."The Eleventh Five Year Plan witnessed jobless growth," he said. Mr. Saxena, a retired bureaucrat, said the government's argument that more young people are now attending educational institutions fails to explain "why there are still 40 million unemployed people in the country (according to the Current Daily Status figures of National Sample Survey Organisation 66th round), who should have got the jobs if the economy was creating them." Consumer Confidence, Job Optimism Take A Dip The deteriorating economic conditions have led to a drop in optimism levels among Indians this quarter, according to a survey by market research firm Nielsen. Around 61 percent of consumers said they would put aside their spare cash in savings, compared to 54 percent in the last quarter. As far as job prospects are concerned, Indians continue to be the most optimistic globally. However, their optimism has dropped from 86 percent in the last quarter to 81 percent in this quarter. Service Sector Index At 2-Year Low India’s service sector shrank for a second straight month in October, Financial Express reports. The seasonally adjusted HSBC Markit Business Activity Index slumped from49.8 in September to 49.1 in October, its lowest level in two-and-a-half years. The index measures the performance of around 400 firms. New business grew at its weakest pace since May 2009, a fall-out of the sagging global demand and tight monetary policy. India’s most closely watched inflation gauge, the wholesale price index, rose 9.72 percent in September on an annual basis, a tad lower than August’s 9.78 percent. The survey showed that Indian service providers were more hopeful about the coming year than last month as business expectations saw a rebound. The HSBC Markit Manufacturing PMI for India rebounded in October after remaining static in September. Survey Reveals 30% ITI Grads Still Jobless Despite industry having preference from government trained manpower about 30% of the pass-outs failed to get a job in 2009 after getting vocational training from public sector institutes, a government survey has found. The reason, according to a survey done by ministry of labour, says that non-availability of jobs or low salary were the two prime reasons for high unemployment rate in Industrial Training Institutes (ITIs). Most of the trainees were found to be from low-income group with monthly family income of less than Rs 5,000. On the curriculum side, 46 new trades have been added and special courses have been run with the help of the industry to train the trainers. The government has also initiated a scheme - apprenticeship training scheme - to get on field training. The impetus was given to provide adequately trained manpower for the economy growing at over eight percent annual rate.But, many pass-outs found that the industry preferred cheap labour, which was available in abundant in the market and therefore, did not offer them adequate salary. Many of the trainees expressed unhappiness over inadequate stipend, fewer opportunities for learning new skills and involvement of trainees in low end jobs. The survey conducted to assess the nature and quality of training in it is and employability of trainees found that practical training was lacking in the module. Many of the trainers also felt that the syllabus has not been synchronized with the needs of industry. ING To Slash 2,700 Jobs In Dutch Retail Banking Biz Dutch financial services giant ING Group plans to axe 2,700 jobs in its retail banking business in the Netherlands, as part of its cost cutting measures.ING Group will cut 2,700 jobs, including 700 contract workers, at its retail bank in the Netherlands, which would save 300 million euros (USD 412 million) annually from 2014 onwards, it said in a statement . "As income is coming under pressure, we must renew efforts to reduce expenses across the Group to adapt to the leaner environment and maintain our competitive position," Group CEO Jan Hommen said. Financial institutions across the world are laying off employees in their attempts to lower costs. Thanks Nitin Jain