Crisis , Recession ,bailout , Socialization of capitalist economic were the buzzword of second half of year 2008 .Year started with a bang ,Share market indices were on all time high ,whether in us or Europe  or Asia . But suddenly the world market started crashing and the reasons were mortgage crisis led financial failure of major bank in US. The trickle down effect started engulfing the world and slowly all major economies started bleeding .oil ,gold ,currency auto ,finance , insurance ,tourism ,real estates , aviation all sectors started responding in negative way The liquidity crisis fueled by the failure of mighty financial institution has been compensated by the announcement of bailout packages by all major economic of the world . But the weight of the package seems not enough to balance the burden of crisis.

In these tough times when, Governments all over the world our trying to infuse liquidity to control the situation, the job market is facing draught like conditions .How long this drought will continue or take the shape of famine to kill thousands as happened in 1930’s crisis, nobody in position to say any thing about it .All future projections regarding the shining economic suddenly turned out to be a chimera. What is the real conditions world is really heading towards prosperity or just a game played by the hedgers to just make money and keep the welfare of the world.

When ever the corporate world faces hardship, it start cutting its expenditure and the first victim of this cost cutting mechanism is non other than the valuable employers this time also when the most of the company’s are facing the liquidity crisis, along with slowing demand, they started firing employees .Already million of job are lost in USA and European market and the impact is clearly visible in the developing economics.

According to World Bank projection about the 2009 trend, it is clearly stamped that the growth rate will slowdown if not go in negatives. Us, UK, Germany and Japan are already in recession and are cutting the bank rate heavily to infuse money in the market to keep the demand supply equation in balance. In which direction this tide will turn and for how long this reverse trend will continue is not easy to answer, because it takes years to win back the faith of investor and confidence of consumer.With financial institutions crumbing, thousands of employees were laid off as the jobs became redundant. Since all sectors are interdependent in some way, meltdown which started with the financial sector is affecting other sectors as well.No sector is insulated from any other sector in a practical economy. It is obvious that if unemployment and wage rate decreases, the disposable income decreases. This leads to lesser demand for goods which drives down the GDP.Since there is a wide gap between demand and supply of manpower, only the fittest will survive in such a scenario the most relevant candidates only are likely to be called for a job interview.

Possible consequences:

  • There will be a large pool of qualified unemployed candidates
  • Only the most relevant candidates may be consider for any position
  • It will be an employer market
  • The relevant candidate will be readily available
  • The fresh candidates may find it difficult to obtain suitable position
  • Average wage rate will come down
  • Impact on education sector.

Any impact on employment opportunity will directly affect the education sector. During economic slowdown time of shortage in job market, it is natural to expect the number of enrolment at universities. People are like to upgrade their skills and acquire additional qualification to gain an edge over other. Student completing under-graduation may directly move on a graduate program rather than entering to job market. But during the downturn, job is in short –supply as compared to number of available candidates. Hence employer will employ better candidates at a lower wages.

At the same time completion for admission to higher degree programme will also intensify .Student that who  have recently completed schooling or undergraduate will apply for higher education.

Advantages of higher   education in general and management education in particular are generally    evaluated only from the arability of placements .Placements will definitely not be very bright during recession ,this is because the market will anyway be flood with experienced job-seekers , who will be willing to work at reduced wages .

From another perspective, if parents are unemployed/underemployed, how can they finance their wards’ education? Even Universities may not have a big fat scholarship fund that was available earlier. There is news that all major universities in west are reducing budget and cutting seats to cope with the crisis.The government can actually utilize this opportunity to fuel economic growth once again. If the government issues amount of high powered money which is used to fund students higher education and for educational infrastructure development. This will have four benefits .Firstly, student’s education will be financed and quality graduates will be available.

The end result will be a pool of qualified job seekers seeking employment in an economy which would have again started growing because of an investment in these very candidates. It is for sure that world is not going to end in this crisis, we have faced several such crisis of environment and political nature and successfully come out of it ,even this time we welcome out of this economic crisis successfully , with little bit of pain that is all about human spirit.

The five job areas For graduates in this year’s survey include:

  • Finance/accounting (31%)
  • Marketing/sales (20%)
  • Consulting (17%)
  • General management (14%)
  • Operations/logistics (9%)
  • India’s rapidly-growing economy is bringing up demand for new skill sets. Educational institutes are introducing new and unheard of courses to meet industry demand. Welingkar Institute of Management, Mumbai, plans to roll a Diploma programme in judiciary management soon.

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