Youth Unemployment Gap & Challenges with IT Hiring
India's unemployment rate is currently at 7.8%. Which is the highest it has been in four years. The unemployment rate is even higher for young people, with 23.5% of people aged 18-29 unemployed.
One of the IT giants announced that it will not be conducting campus recruitments for now. The remaining employees will get variable pay based on their business unit's performance for the quarter ended September 2023.
Factors of Unemployment
Technological Advancements: The rapid evolution of technology creates a constant demand for new skills. Adapting emerging technologies is making many skills obsolete, where many professionals are yet on the legacy systems and infrastructures. Tech professionals must be up-to-date on the new skill demands in their respective sectors.
Skill Mismatch: 60% of professionals who fail to keep pace with these changes may find themselves unemployed as their skills become obsolete. Especially for freshers, educational institutes must have their students updated with in-demand skills. Moreover, a project extensively demonstrating their skills will give them an edge while applying for jobs.
Outsourcing: Globalization has made it easier for companies to outsource IT work to regions with lower operational costs. Further, this results in job displacement in higher-wage locations. Resulting in more opportunities coming to India, and on the other hand, that makes job search more competitive.
Automation: Adapting automation and artificial intelligence in IT can lead to the displacement of routine jobs. That's specifically for menial and mundane tasks like IT support and testing.
Global Competition: With remote work becoming increasingly prevalent, IT professionals must now compete globally, which can lead to downward pressure on wages and potentially result in unemployment in high-cost-of-living areas.
Read more: What do Recent Hiring Demands prioritize?
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How to Overcome IT Unemployment
Professional Development: IT professionals must commit to ongoing learning and skill development to stay relevant in this rapidly changing field. The demand for specialized skills in tech skills like Artificial intelligence, cloud computing, cybersecurity, and data science is rising.
Networking: Building and maintaining a robust professional network is essential, where Industry events, online communities, and networking platforms can help you stay informed about job openings.
Independent Contracting: Considering today's gig economy, many IT professionals find employment opportunities through freelancing platforms. It can be a viable way to gain experience and income while job hunting.
Adaptability: IT professionals must be adaptable and willing to embrace change. Being open to new technologies, methodologies, and working environments can make you a valuable asset to any organization.
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