Shams Ur Rehman Alavi
Sudden layoffs in tech and other major companies is an issue that needs urgent focus, especially, as big companies and tech groups are ruthlessly going for job cuts.
The layoffs affect society in a big way and mass retrenchment in leading companies, has a serious impact on the job market as well as entire economy.
Besides, there is a ripple effect and it is a major cause of concern for youth who are ready to enter job market, as well as those in 30s and 40s, but fearing that the company may suddenly sack them or shut a unit, at will, with little scope to get a new job because of the fast changes in the IT sector as well as economic transformation and the arrival of artificial intelligence (AI).
In India, the IT industry employs millions of people, directly and indirectly. Over the last quarter century, this industry led to allied job creation too.
Once a large number of engineers were hired but this figure fell down dramatically after 2020-2021. Most of the top companies have seen a reduction in work force in the last three years.
Recruitments from campuses have also gone down. After Covid, there was already economic uncertainty. Globally too, a large section of work force was affected as layoffs continued in US. The trend of hiring and layoffs in top companies like Google, Meta, Amazon are often, unfortunately, followed in other companies, sectors and regions too.
However, the fear of AI has already gripped the software industry. In India, surveys have found that a majority of tech workers, fear job losses as lot of work is being delegated or automated.
Now, there is need to focus on job creation and to ensure that the skills must be upgraded so that job losses are minimum. Otherwise, it can damage the industry and overall economy.
It is not that AI is just going to take away jobs. It will also bring jobs but reskilling and upgrading self to meet demands of market, are required.
Countries that will be slow or fail to adapt fast, would be affected the most.
IT industry has brought boom in economy and due to it, there is spending in diverse fields–from housing to consumer goods,
which pumps money in market. But, the possibility of AI replacing large number of tech employees, would be damaging.
India is a dominant player in the world in software but other countries are also coming up, fast. Employability of graduates and techies is also a major issue. AI brings opportunities but it is unclear if it will outweigh the risks. Time will tell how AI revolution will affect the industry.
Apart from Vietnam, Philippines, Poland, certain other nations are also emerging in the field.
