India’s unemployment rate jumped to 27.1% from 8.4% as per the latest report by CMIE. The numbers in USA are 16.1% & 30 million folks unemployed, that’s close to ten percent of the American population…
As per the data 91.3 million small traders & labourers, 18.2 million entrepreneurs, 17.8 salaried employees are unemployed now. 127 Million have lost jobs. Roughly one in 4 Indians has lost his/her job
Many of us may not trust this data but this is a reasonable reflection of what we are seeing on the ground
The cause of concern is that of entrepreneurs wanting to get back to the employment market.This has impacted not only the unemployment rate but will impact future job creation as well.
As Industries start to open up to the challenge they all face is that of the migrant labour not being available
Conversely, there are about 15 million freelancers in India? Will the virus impact them?
The virus would have taken their work away. The pending payments would have stopped coming in.
But this wont impact them, because it would remind them of the days when they started. Every freelancer goes through months of not making any money before his first assignment comes in. This is how many freelancers start their journey as an entrepreneur. Sometimes it feels like a thirsty man in the desert searching for even a drop of water.
But then havent employees gone through the same?
Strangely enough they are addicted to salaries, or shall I say increasing salaries. So they cant stay without it. The new normal is decreasing salaries & layoffs.
When the economy opens, the freelancers will benefit the most, many firms may not want to hire employees to increase their costs. Which simply means the millions who lose their jobs now may be forced to become freelancers.
The gig economy may grow exponentially several times in a matter of months.
Will freelancers replace employees?
Thoughts?
DISCLAIMER : Views expressed above are the author’s own.
Blog
Green Carrot
It is estimated that over 100 million people will migrate between 2015 and 2050. Developing countries will supply manpower to numerous aging populations to meet skill shortages that are already showing. That will mean large-scale migration across continents. No wonder most countries have put immigration procedures for qualified immigration on top of their agenda. Globalization forces people into migration into countries where the ideas of divide and rule have been codified as a “legal” justification for the injustices. Inequality therefore is re-created and re-introduced by a global economic system. In the realm of social reality – this social inequality creates a caste system, where one class of workers is pitted against the other for personal gain. Where when one side of the coin gets tainted, the other side shines brightly, putting the society at large in a conundrum. This blog examines the globalized political and economic system that creates illegality by displacing people and then denying the guest workers rights and equality as they have to do what they have to do in order to survive.
Author
Rajiv Dabhadkar
Rajiv has over 25 years of experience in education and technology sectors. Rajiv has lived in the United States for more than a decade helping large companies deal movement of global talent. Rajiv has been a proponent of migration for over a decade and has actively moved forward the debate on Indo-American work visa related migration policies. He is the Founder of The National Organisation for Software and Technology Professionals, in 2004. He has authored two books – “American Work Permit – Official Rules & Regulations of American Work Visa” and “Green Carrot – America’s Work Visa Crisis”. He is interviewed in over 200 articles in over 30 leading publications both in India as well as the United States. He has testified against the work visa program abuse and assisted in the drafting of the ‘Visa Fraud and Abuse Prevention Act of 2007’ to prevent visa misuse and document fraud in the immigration process. His research work has been cited by the UK Border Agency as well as the US Homeland Security.
Rajiv has over 25 years of experience in education and technology sectors. Rajiv has lived in the United States for more than a decade helping large compani. . .
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