As per the survey of Indian Society of labor economies (ISLE), lowered economic growth and rise in inequality are long term impact of COVID-19 while loss of employment is the immediate impact. India’s unemployment stands at 24% in May. Jobless people include entrepreneurs, salaried class and migrant workers. Now, the big question is what will be the job situation post COVID-19?
The answer to the question is that the philosophy of “One size fits all” has to be get rid of. Everyone is in the same storm but in different boats. It implicates that the post-impact of COVID-19 will not be same for all. It will depend on industry to industry, their clients, debts and their geographical situation. It is evident from the fact that while existing professionals have lost their jobs, job seekers have entered new markets. Revenge consumption is also observed as FMCG has already depleted stocks. Hence, it is vital to understand the impact of pandemic on employment opportunities.
The impact of COVID-19 can be analyzed as:
- Reduction in full time jobs
Companies would initiate steps to reduce their fixed overheads and will opt to outsource work except core jobs. They would take all essential measures to cut down cost. It is expected that jobs that do not add value to the business will vanish quickly. High salaried jobs that do not justify their cost will also decline. Companies would prefer free lancers and contractual workforce to carry out work.
- Digital Transformation
Social distancing is the new norm which will change everything to digital. All the work in the offices would be done online from handling clients to meetings, etc. Most of the work would be handled online. People would prefer work from home and homes will have a home office to facilitate the work.
- Cost cutting
In the coming scenario, the companies will not be able to shoulder the burden of high costs. To combat the uncertainty, variable salariesconcept could be adopted. Employees would not be given fixed salaries. They will be expected to accept and support the new salary structure which would have variable components. This would include sudden cuts in the salary which would help the companies to sail through tough times.
- New job opportunities
Tremendous boost in jobs could be seen in healthcare, wellness sector, and digital economy. New jobs will be created in these sectors and high demand of employees will be experienced. Local economies will emerge thereby creating small job opportunities. Small scale industries will find new opportunities. Small ventures would be undertaken by entrepreneurs and new job opportunities will be created in the economy.
- Job fitment will rule over qualification
Companies would overrule qualification of employee over right attitude. People with ability to learn new skills and adapt with changing environment would be hired not merely on the basis of degree and experience. More weightage would be given to employees who are willing to learn and mold in the new set-up.
- High expectations from fresh graduates
Fresh graduates will be expected to come prepared for the jobs. The trend of lengthy training will fade away. Companies would not spend time or money on grooming new graduates. They would expect them to be well trained and groomed for the new role. One more challenge for them would be that they would have to compete with experience employees who are ready to work at lesser salary.
–Prof. Ruchi Rayat