Industry leaders expect upto 30 per cent job cuts post the lockdown: CII Survey

The Confederation of Indian Industry (CII) recently conducted an online survey with more than 200 corporate CEOs, across many sectors, to understand the forecast of jobs in India after the national lockdown is over. The lockdown was announced due to the coronavirus outbreak in India and was expected to go on or 21 days.

The results of this CII CEO Snap poll stated that more than 52 per cent of them expect job loss post the lockdown. However, 46 per cent said that there won't be job cuts. Remaining 2 per cent were not sure about the scenario.

Talking about the same, officials said, "About 52 per cent of the CEOs anticipate job losses in their respective sectors post lockdown. 47 per cent of the firms expect upto 15 per cent job losses and another 32 per cent expected 15 to 30 per cent job losses."

The results also stated that the inventory of companies is not being utilised and need to be cleared in the 30 days, but owing to the scenario, there may not be a demand for the same. Further, many firms are also expecting more than 10 per cent drop in revenue and a 15 per cent drop in profits, which may have an impact on the fourth quarter of FY2019-20 and the first quarter of FY2020-21.

Commenting on the survey, CII Director General Chandrajit Banerjee said, "The government could announce a fiscal stimulus package for the industry and implement it on fast track mode, given that the sudden imposition of the lockdown has significantly impacted industry operations and the uncertainty of a recovery threatens a substantial loss of livelihoods going forward."

Access to manpower and movement of products has been pointed out as concerns in the report, especially in sectors dealing with essentials manufacture, transport and distribution. Other foreseen problems have been reported by key industry leaders and it is expected that the government will support the same. Finance Minister (FM) Nirmala Sitharajan who also heads the COVID-19 economic response task said that a decision regarding these concerns and requests will be taken soon.