Is recession real?

‘The Covid-19 pandemic hit the global economy hard. And even as the economy struggled hard to recover from this, the Russia-Ukraine war arrived as another great setback. These two factors combined are expected to push the global economy into recession next year. And India is not immune.

Some of the impacts include

Major output loss in 2023

Rising interest rates to arrest inflation

Mounting public debt

Weakening currencies

Costly food and fuel

Refer to the detailed article by India today?

https://www.indiatoday.in/diu/story/global-recession-2023-how-it-affects-india-detail-2284356-2022-10-12

What are some of the other facts that are causing concern

The services sector lost?7.9 million jobs in October 2022. Of these, 4.6 million losses were incurred in rural India and 3.3 million were in urban India. There is a concentration of job losses in the services sector in rural retail trade. Retail trade is the largest employer among the services industries

As startups in India keep firing their staff to navigate through the funding winter, India may see more than 60,000 job losses in 2022 alone, led by edtech and e-commerce platforms, according to an IANS report.

https://www.cnbctv18.com/india/indian-start-ups-may-see-over-60000-job-losses-in-2022-led-by-edtech-and-e-com-warns-report-14021402.htm

The?unemployment rate ?shot up to 8.3 percent, which was the highest compared to the rates in the past 12 months. This rise in the?unemployment rate ?reflects the inability of the economy to provide adequate?jobs ?at a time when the demand for?jobs ?from people increased.

https://www.business-standard.com/article/opinion/employment-fell-in-august-2022-122091200643_1.html

Here is a list of top companies, both Indian and international, that have laid off their employees in 2022.

1. Lido Learning – 200 employees
2. Microsoft?– 1800 employees
3. Walmart – 200 employees (WSJ report)
4. Alibaba – 10,000 employees (South China Morning Post)
5. Netflix – 450 employees
6. Twitter – Laid Off – 100 employees
7. BlueStacks – 60+ employees
8. Unacademy – 600 employees
9. Vedantu – 624 employees
10. Cars24 – 600 employees
11. Meesho – 150 employees
12. Better.Com – 3000 employees
13. Blinkit – 5% of the workforce
14. OkCredit – 40 employees
15. Furlenco – 200 employees
16. Trell – 300 employees
17. Ford – 580 employees
18. Noom – 500 employees
19. Robinhood – 300 employees
20. Nestle – 104 employees
21. Tesco – 1600 employees
22. Hindustan Unilever Ltd – 1500 employees
23. MFine – 500 employees
24. Klarna – 700 employees
25. Cineplex Entertainment – 5000 employees
26. Primark – 400 employees
27. Royal Mail – 700 employees
28. DiDi – 3000 employees
29. Conde’ Nast – 90 per cent of workforce
30. Rupeek – 200 employees
31. Coinbase – 1100 employees
32. CityMall – Laid Off: 191 employees
33. Byju’s – 2500 employees
34. Tesla – 200 employees

(Above data has been taken from Inventiva)

66% of CEOs in India expect a recession in 2023; layoffs are on the cards.??Eighty-six percent of CEOs in India, compared to 71 percent of CEOs globally, predict that a recession will impact company earnings by up to 10 percent over the next 12 months.

39% CEOs freeze hiring; over 45% plan job cuts in next 6 months amid recession concerns: KPMG survey

You're not alone, nearly 80% of workers are worried about losing their job during a recession

Meta, Citigroup, Morgan Stanley, and other corporate giants lean on job cuts as recession fears mount

Economists expect a recession, and job losses by 2023

Employees in tech companies are hit by a tough season of layoffs and hiring freeze. Meta, Twitter, and Amazon.com Inc too were planning to lay off about 10,000 people.

Infosys reported lower attrition of 27.1 percent in the just-concluded quarter, compared to 28.4 percent in the June quarter.

For Wipro, the attrition came down to 23 percent in Q2FY23, from 23.3 percent in the previous quarter.

The attrition rates for HCL Tech had been rising since the quarter ended September 2021 (15.7 percent in Q2FY22), but it plateaued at 23.8 percent in Q2 FY23, holding on to the same levels as June quarter (Q1FY23).

Good news

State Bank of India (SBI) Chairman Dinesh Khara on Friday said that the impact of a?global recession ?is unlikely to be as pronounced in India as compared to other countries. He said that India is doing well with a projected growth rate of 6.8%.

It is not a nice feeling, but it will reduce the government's costs substantially. A recession in the West could lower commodity and oil prices," a senior government official told BT TV.

Some steps to be taken by us during the recession?

1. Delaying major purchases like home or car. 34%
2. Paying down debt. 29%
3. Planning to reduce holiday spending. 28%
4. Allocating more income to savings. 24%
5. Staying in a job they don't enjoy. 14%

Eighty-four percent of respondents in a recent survey said they are concerned about a recession happening before the end of the year, and 76% said they are making changes to their lifestyle in preparation for the downturn, according to financial group

Aravinda Prabhu T is an HR consultant, Co-founded his own boutique consulting company after working with Sonata Software, HCL Infosystems, KPMG Advisory, MB Holding LLP & Cadila Pharma called Mpower HR, which services countries like India, Oman, UAE, Bangladesh & Africa. He can be reached for any support towards HR transformation work, HR projects, Assessment, and Development Centres focused Talent Acquisition support and outsourcing HR, managed by Mpower HR. Email: [email protected]