As the global economy continues to remain volatile, layoffs by different tech companies continue across the globe. Majority of the layoff is being seen in the IT sector.
As per Indian Staffing Federation, nearly 6% of outsourced contract workers were laid off in the March quarter. The federation is a body of 120 recruitment agencies that provide about 60,000 employees. By this, 3600 contract employees were let go in the first quarter of 2023.
As per Business Today, India's IT sector employed nearly 5.1 million workers in FY22. Government estimates point out that thousands of these contract workers are let go and the hiring is stopped.
It is also expected that hiring of contract workers through third party may remain weak in the upcoming quarters. Meanwhile, according to CMIE, the unemployment rate in April rose to 8.11% from 7.8% in March. The rate has increased for the 4th month in a row.