Effects of Depreciating rupee on Jobs markets

Rupee has witnessed a drastic fall of 6.7 percent this quarter making the conditions worst. The common people is busy in the activity of earning money on the contrary the reality is bitter as the rupee is depreciating and every rupee fall is making the common man poorer. Its effect is widespread along with the drop in value of rupee the job market is facing a crisis. Financial crisis, corporate earnings and economic crisis are the result of it.

Salary remains the same while the rupee value depreciates

People in the job market face an uphill task because with the depreciation in the value of rupee the salaried class people are unable to satisfy their wants. The salary remains the same on the contrary with the same amount of money less things can be purchased. The grocery bill rise as a result of the depreciation in the value of rupees.

Jobs & remuneration

The depreciation in the value of rupees can also lead to reduction in the pay check of the employees. Generally an industry depends on the important factor and when the rupee depreciates the payment made will be higher in terms of another currency.  So the company tries to balance the act and hence as a result of it the payment is reduced.

Less Jobs in the market

The company usually follows the approach of cutting down the recruitment process. As the rupee depreciates the company usually dry up the recruitment process because the companies do not wants to pay much in case of rupee depreciation. The job seekers face a Himalayan task during this phase. There is an acute shortage of hiring and hence the condition worsens for the job seekers.

Business Schools are affected

The future employees are the students of the b-schools so when the rupee depreciates the company strict and check the hiring process. This affects the B-schools and its students who head forward to work in the corporate sector. The job market remains passive and therefore the students of b-schools have to wait for a long time to get absorbed into the corporate sector.

Reduction in the staff strength

As the company faces an unusual situation during the rupee depreciation hence it follows a policy which is to reduce the strength of the employees. Majority of the companies adopt this policy to cut down the expenditure and save during the depreciation of rupees. Therefore the employees find themselves in a fix and unable to cope with the situation.

It has been witnessed that in the past couple of years the value of rupee has declined drastically against the value of US dollar, around 30 percent against the dollar. This translates into a fall of around 30 per cent in the purchasing power which is hurting the people. The slump in the value of the rupee is not restricted to job market but it has gripped household finances too.  All can be done is to wait and see what the policies that the government follows to put a check on the decline of the rupees.