Many a times there is a gap between supply and demand ( skills/knowledge etc.) which eventually gets corrected due to harsh measures like layoffs.
However, I would like to know your views on how jobs in the previous generation were supposedly more stable (even in the private sector) and no one heard of anyone getting fired (esp in India). Is it because of the cut-throat competition now, the technology boom or is there anything else, like employers had more of a socialist mindset earlier which is missing now.
I think the rise of IT jobs which are better paid and more globalized is substantial only since the year 2000 in India. These businesses can pay better because they earn their money abroad.
India has always been suspicious of business owners but IT pays enough for most people to overlook the "stability" angle. And it is still a growing sector so even the mediocre can find well-paying jobs, even if laid off.
It is obviously quite difficult to downsize in India due to regulation and popular sentiment so most non-IT private companies either pay less or higher a much higher proportion of "temporary" workers or people through labour contractors and similar intermediaries. The permanent, employed, salaried class is very tiny as a proportion of population in India.
Overall the culture is toxic. Businesses can't easily let go people when cashflow suffers. And businesses don't treat the employees well in terms of pay, work hours etc. Employment at will may actually benefit all parties.
The fact is capitalism can create better and well paying employment compared to our default socialist modes of thinking. As long as some safety net is provided when layoffs happen, this will benefit employees as well in the long run.
Very thoughtful and balanced analysis as usual. Completely agree with the opinion that the ability to learn new skills is the only “true skill” one can possess in this age where we seek efficiency in every aspect of our living.
"Survival of the fittest" rules.
Many a times there is a gap between supply and demand ( skills/knowledge etc.) which eventually gets corrected due to harsh measures like layoffs.
However, I would like to know your views on how jobs in the previous generation were supposedly more stable (even in the private sector) and no one heard of anyone getting fired (esp in India). Is it because of the cut-throat competition now, the technology boom or is there anything else, like employers had more of a socialist mindset earlier which is missing now.
I think the rise of IT jobs which are better paid and more globalized is substantial only since the year 2000 in India. These businesses can pay better because they earn their money abroad.
India has always been suspicious of business owners but IT pays enough for most people to overlook the "stability" angle. And it is still a growing sector so even the mediocre can find well-paying jobs, even if laid off.
It is obviously quite difficult to downsize in India due to regulation and popular sentiment so most non-IT private companies either pay less or higher a much higher proportion of "temporary" workers or people through labour contractors and similar intermediaries. The permanent, employed, salaried class is very tiny as a proportion of population in India.
Overall the culture is toxic. Businesses can't easily let go people when cashflow suffers. And businesses don't treat the employees well in terms of pay, work hours etc. Employment at will may actually benefit all parties.
So overall, Indian businesses don't grow as large as they should. This is explained better in this article: https://economictimes.indiatimes.com/small-biz/sme-sector/economic-survey-2019-the-curious-case-of-indian-firms-starting-small-staying-small/articleshow/70069672.cms
The fact is capitalism can create better and well paying employment compared to our default socialist modes of thinking. As long as some safety net is provided when layoffs happen, this will benefit employees as well in the long run.
Very thoughtful and balanced analysis as usual. Completely agree with the opinion that the ability to learn new skills is the only “true skill” one can possess in this age where we seek efficiency in every aspect of our living.