India's unemployment rate rises to 8.11% in April |
India's unemployment rate rose to 8.11% in April, marking the fourth consecutive month of increase, according to the Centre for Monitoring Indian Economy. The IT sector in India lost nearly 60,000 outsourced contract workers in the year ending in March, with jobs for flexi workers hired through contractors by companies shrinking 7.7% from a year earlier. "The drop in new employment generation within the IT flexi staffing sector mirrored the global slowdown in IT hiring," said Lohit Bhatia, president of the Indian Staffing Federation. However, the hiring in the manufacturing, logistics, and retail sectors remained strong, helped by domestic consumer demand. The hiring of flexi workers in the IT sector shrank 6% quarter-on-quarter in the March quarter, and hiring of contract workers through a third-party may remain weak for the next few quarters in the software industry. A report by J.P. Morgan analysts warned that soaring inflation, supply chain issues, and the hit from the Ukraine war will bring an end to the growth boom that India's IT services enjoyed during the pandemic. |
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