Demonetization has raised a lot of questions in the education and employability world as well. 2016 has faced a challenging end due to the cash crunch in India. As a result, the job market is also expected to witness a dip in 2017 as the employers are waiting for the phase to end and hikes seem a little difficult.
Monthly analysis of the job market shows that growth in hiring in 2016 is less as compared to 2015. Experts state that the key reasons behind this are the result of US Presidential Elections and demonetization.
Managing Director of Antal International India, Joseph Devasia said that sectors that are consumer driven are facing a difficult time as e-commerce and FMCG companies are struggling with a dip in sales since the announcement of demonetization.
Also, hiring in sectors like real estate, infrastructure, construction and high-end automobiles has gone down considerably and will be hugely impacted in the longer term.
However, experts also stated that most of the after effects of demonetization are short-term. The further added that the scheme will be beneficial in the longer run as it will create more formal jobs for students and will help the country grow.
It is also estimated that fin-tech, banks and digital payments sectors will benefit the most from demonetization. These sectors will hire rigorously in the coming years.
As per Willis Towers Watson, after demonetization, only 31% companies are affirmative regarding the hiring outlook in 2017. It is also estimated that employees are expected to get a single digit salary increase for the first time since 2011.
MyHiringClub.com has estimated that salary hikes will be difficult in 2017. Increment provided by organisations will not be very attractive and the average increment is expected to be just 9%.