Suddenly there was no money, no buyers and so, no sales. Soon there were no profits, no wages and soon after – no jobs...
WHAT WAS touted as a measure to curb the flow of black money in the economy, has left most Indians with no money to spend. Demand for many non-essentials and some essentials, like green vegetables, plummeted. The demonetisation of the Rs 1,000 and the old Rs 500 currency notes wiped out 86 per cent of the currency in circulation at one stroke on November 8. The ensuing cash crunch had a relay effect on the demand for goods and even some services.
Many enterprises have since struggled to make a profit and pay wages for their employees. Many have been compelled to lay off staff and some more are on the verge of trimming their workforce. Anandorup Ghose, director at the US-based human resource consultancy, Aon Hewitt, has predicted job losses and a freeze on hiring over the next six to eight months.
Industry body, Assocham, has reported job losses in the unorganised sector. Assocham president, Sunil Kanoria, said, “In the unorganised (sector), which is the daily wage earner, there will be some impact at the moment... The sales will get affected, so they (vendors) will not be able to pay on a daily basis.” Debabrat Mishra, partner, Deloitte Consulting India said, “Along with the unorganised sector, the job market in the services sector will also have maximum impact. People will avoid spending on services like beauty and wellness, food delivery etc. and as a result, workers engaged in the sector will be impacted.”
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