Commerce dept seeks Labour ministry’s help to measure job losses

A recent survey of 58 companies across sectors by the Commerce ministry had revealed that over 10,000 jobs had been slashed in the first six months of the current financial year. Recently, commerce and industry minister Kamal Nath wrote to Prime Minister Manmohan Singh warning of severe job losses “if no action is taken”.

In a missive to Union labour secretary Sudha Pillai, the Commerce Ministry has indicated that it is expecting as many as 200,000 job cuts by the end of December 2007. The Labour ministry has been requested by the DoC to examine its job loss estimates and get them appraised by officials in the field.

The rising rupee is not the only reason for the massive job cuts — the Commerce Department has also cited other reasons such as high interest rates and states not reimbursing exporters’ taxes in a timely manner.

The Labour Ministry has also been requested to examine the relief package proposed by the DoC for exporters and analyse its potential impact in mitigating job losses. In rupee terms, exports by the textiles industry are down 25 per cent so far this year. The handicrafts sector, which employs 2 million, is the worst hit with exports dipping a massive 56 per cent. With mid-term election prospects still looming, the Government may be forced to plan some steps soon.