Job losses in India may rise in coming months: Citi

In an indication that the global layoff wave has hit the Indian shores,Citigroup believes that jobless numbers could climb in coming months.

In an indication that the global layoff wave has hit the Indian shores,global financial services major Citigroup believes that jobless numbers in the country could climb in the coming months.

According to a latest report by Citigroup,the country does not appear to have remain unscathed from the massive layoffs witnessed worldwide and unemployment could rise further with home coming of migrant workers.

“The pressure on employment,confidence and price levels would be more burdensome than in the past… Moreover,India could be impacted by the return of migrant workers or declining remittances,” Citi India economist Rohini Malkani said in the report.

Citi further said that the Ministry of Labour has indicated that over 5,00,000 jobs were lost during October-December 2008,with export-oriented sectors such as gems and jewellery,autos,and textiles being most impacted.

However,the report stated that this statistic only covers the organised sector,which comprises just 10 per cent of the country’s workforce of close to 385 million.

The report also said that with elections round the corner,job security could be one of the key election issues.

India’s unemployment rate is officially at 8.2 per cent but the point worth noticing is that disguised employment exists in developing economies,it added.