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Relax, jobs in India are safe!
Shweta Rajpal Kohli, Vasanthi Hariprakash
Friday, October 31, 2008 (Delhi, Bangalore)

With job losses making headlines in the US, the big question on
everyone's mind: Are jobs in India safe? And will pink slips and
salary cuts become the order of the day here as well?

A startling report released by industry body Assocham claimed that
companies in key sectors like real estate, finance and aviation will
trim their workforce by as much as 25-30 per cent in the coming weeks.
But after the top economic policymakers stepped in to rubbish these
findings, Assocham has withdrawn the report.

"Assocham has withdrawn the report," says Montek Singh Ahluwalia,
Deputy Chairman, Planning Commission.

Finance Minister P Chidambaram explains: "An economy growing at 7 per
cent is a job creating economy, not a job destroying economy. The only
difference between an economy growing at 7 percent and an economy
growing at 9 per cent is the pace of job creation. Don't confuse a
slow pace of job creation with no jobs."

But as the crisis unfolds, companies have decided to wait and watch.

"There is a looming uncertainty in the market today, but as of now
there is no instance of real job cuts happening in a large phase.
Probably what we are getting to hear or see is those normal appraisal
cycles where you try to find bottom performers who are not doing well
and who are being asked to leave or being redeployed in various other
projects," says Amitabh Das, CEO, Vati Consulting.

Though downsizing will be seen as the last resort by companies in
India, many HR heads say the tough economic environment means fat
bonuses and increments may have to go.

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