Job Crisis Deepens; 75,000 Telecom Sector Employees Lose Jobs In Past One Year

The Logical Indian

November 15th, 2017 / 5:23 PM

Over 75,000 employees from the telecom sector lost their job in the last one year and 30,000 to 40,000 more job loss is anticipated. The reason behind such a major shift can be attributed to the introduction of Reliance Jio in the telecom sector which resulted in prioritisation of data and accelerated the consolidation(merger) of operators, tower firms and vendors.

 

Various reasons

The competition in the market is one of the many reasons for the loss of 75,000 jobs, a report by the Economic Times said.

Teleanalysis said that the merger of Vodafone with Idea will result in almost 10,000 employees losing their jobs. India’s telecom giant, Bharti Airtel, is in the process of acquiring Tata Teleservices.

Sistema, Telenor, Videocon already shut shop. Severe competition in the market made it a five company industry, where smaller companies faded slowly.    


Jobs in India

India’s unemployment rate has been an issue of rising concern. A more or less healthy growth rate has stopped being accompanied by a proportionately healthy job creation rate.

In its annual household survey conducted by Labour Bureau, it is found that the country’s unemployment rate has risen up to a five-year high of 5% in 2015-16. Joblessness is gripping the Indian economy with each passing year.

The Labour Bureau had earlier measured unemployment stood at 4.9% in 2013-14, 4.7% in 2012-13 and 3.8% in 2011-12. Presently, according to the Labour Bureau, under-employment is at a staggering 35%.

India’s usually neglected aspect of unemployment crisis is of concealed unemployment and under-employment – not finding work for a full year and working at very low wages. The Labour Bureau’s report on unemployment paints a dire picture of both fronts.


RBI issued warning

In April, the Reserve Bank of India (RBI) warned commercial banks about loans issued to the companies in the Telecom sector. “The telecom sector is reporting stressed financial conditions, and presently interest coverage ratio for the sector is less than one,” the note from the RBI read.

In July, experts warned that the sector was looking at a loss of 40,000 to 50,000 employees soon. Reacting to the warning, Telecom Minister Manoj Sinha assured that the situation was otherwise and Reliance Jio itself will create jobs.


Future of the telecom sector

As operators try to keep up with Jio by offering lucrative data and calling pack, it resulted in the selling off of tower assets. After the Vodafone and Idea merger materialises, they plan to sell off their telecom tower assets to American Tower Corporation for $1.2 billion.The debt-laden Reliance Communications also is reportedly reworking its tower business sale. The company might shut its 2G services from December 1.


Contributors

Edited by :

Share your thoughts..

Related Stories

Peon Jobs Uttar Pradesh

UP: Over 93,000 People, Including 28,000 PGs & 3,740 PhD Holders Apply For 62 Peon Jobs

Shimla’s Water Crisis; Facing Acute Shortage Of Drinking Water For The Past Seven Days

Manufacturing Sector Alone Lost 87,000 Jobs, Eight Core Sector Added Just 64,000 Net Jobs In April-June 2017

Govt To Scrap Thousands Of Vacant Posts While Finance Minister Promises To Create 70 Lakh Jobs In One Year

SHe-Box

Govt Launches Portal To Lodge Sexual Harassment At Workplace Complaints By Both Public & Pvt Sector Employees

Sukh Ram

Former Union Telecom Minister From Congress, Who Was Accused Of Telecom Scam, Now Joins BJP

Latest on The Logical Indian

News

Govt Overlooks Major Concerns While Proposing New Groundwater Rules

News

Karnataka: Cabinet Gives Nod To Amend RTE Act; To Give First Preference To Govt Schools

Exclusive

Meet Meerut’s Club 60, A Group Of Senior Citizens Working Towards A Greener Environment

Get Inspired

Going Forward: After Two Trains Ran Over His Legs, This Man Found A Passion For Dancing

Fact Check

Fact Check: From Pakistan’s Flag Waved In Rajasthan To Rahul Gandhi’s U-Turn On Loan Waiver

Awareness

Central Govt Spent Rs 5,245 Cr On Ads Since 2014 Says Union Minister Rajyavardhan Rathore

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.