First, it was the COVID pandemic, then decreased business operations across the world, and now its rising power of AI & expected Global Recession in 2023, all are attacking the employment rate in every country declining the latest job openings in India.
Expected Wave of Global Recession 2023
As per the Centre for Economics and Business Research (CEBR), a global recession will hit production, employment and other economic indicators in 2023, which is also confirmed and expected by other agencies as well. Furthermore, since the COVID pandemic, the inflation rate was constantly growing higher which forced many Countries to withdraw borrowings. This forced their economies to shrink at a notable pace. If we compare the stats between 2022 and 2023 then as per the Annual World Economic League Table of British Consultancy the global economy crosses the $100 Billion mark for the first time in the year 2022. However, this progress will be expectedly barred with a full stop in 2023 with a surging inflation level. This will drastically affect the employment ratio globally. In India it will affect the job openings in Delhi NCR, the capital region which feeds millions of people from different states.
Global Recession can be understood as the state of declined economic progress cycle around the world, lasting between eight to ten years as per IMF estimates. The declined economic progress is identified with a noticeable recession in macroeconomic indicators of a national economy which includes trade, production, capital flows, and employment. A contraction in the employment sector will cause a decline in the latest job openings in India.
Four global recessions have hit the world since World War II to 2020, according to the IMF, which commenced in 1975, 1982, 1991, and 2009. Similarly, the commencement of a new global recession was declared by the IMF in 2020 which was named The Great Lockdown. It was caused by the severe outbreak of the deadly virus COVID-19, which caused National level quarantines for several economies around the world.
One of the major factors that lead to a recession in a National economy is taking high-value loans. When a country gets approval for a high-value loan which is above its creditworthy ratio, the risk of unpayable debt increases.
A stock market crash causes a bear run in which the stock prices can fall up to 20% or even more. This type of fall can start a recession for a National economy, affecting other countries also. So, if the stock prices of major companies fall greatly then they have less room to grow which will result in insolvency.
There is an ongoing economic battle between several countries and surging inflation. And to tame this hiking inflation the Central Banks of major economies are increasing their key lending rates for lending institutions. Thus, this is resulting in high-interest rates on borrowings for both general customers and businesses. So, the tactics of practicing high-interest rates can lead to a global recession in the long run.
With surging inflation and falling economic strategies, consumers always lose interest or confidence in trusting the national economy. It decreases the demand for goods and services causing major business entities to halt their growth. In the long run, this can result in massive layoffs of hundreds of employees from the companies decreasing the employment ratio in the country.
On Global Recession, the findings of other popular researchers are far more negative than the IMF’s estimated data. So, a Bloomberg report has warned that one-third of the world’s economy is likely to fall in October. Furthermore, a 25 per cent probability says that the GDP will increase by 2 per cent in 2023 globally which can characterize world recession.
Moreover, the GDP or Gross Domestic Product will be doubled by 2037 on a global scale as the developing countries will reach the same stage as wealthy countries are on. The report further suggests that East Asia and the Pacific region will be contributing more than a third of what the World will offer by 2037. On the other hand, because of the changing power dynamics, the shares of Europe’s market will likely fall drastically.
Also Read: 7 Proven Ways To Search Latest Job Openings in India
With surging inflation and falling economic strategies, consumers always lose interest or confidence in trusting the national economy. It decreases the demand for goods and services causing major business entities to halt their growth. In the long run, this can result in massive layoffs of hundreds of employees from the companies decreasing the employment ratio in the country.
A global recession means a state of economic contraction for a long period for several National economies. This will lead to a decline in global growth which will result in a loss of consumer interest in the markets, lowering the demand and product levels. This will ultimately lead to an increase in the unemployment ratio worldwide.
“Global unemployment is slated to rise slightly in 2023, by around 3 million, to 208 million (corresponding to a global unemployment rate of 5.8 per cent). The moderate size of this projected increase is largely due to tight labor supply in high-income countries,” mentioned on the website of the International Labour Organisation.
Machines have always been replacing humans since the 18th century. Now, technology has become so powerful that machines are learning themselves. This self-learning ability to complete distinct tasks like humans is called AI or Artificial Intelligence among machines. Due to this, the employees working in several job sectors are at risk of being replaced by AI, especially computer oriented.
All the IT professions that require coding and data evaluation like Coders, computer programmers, software engineers, and data analysts are at risk because of the rapidly developing AI. If you need an example then think about Chat GPT, it has shown us a slight demo of how a self-learning AI can replace a few jobs. This will cause a major decline in the latest job openings in India in terms of IT jobs.
All these types of AI tools are good at extracting data from primary sources and are very accurate in terms of intent. Furthermore, the speed cannot be touched by any human. ChatGPT can produce codes with lightning-fast speed as compared to a human, even if he is an experienced Alpha coder.
Jobs like advertising, content creation, technical writing, and journalism can be easily replaced by AI in just a few years from now. These jobs are less complex than those requiring writing codes, and AI can easily take over these content creation jobs. For instance, even now ChatGPT is being used to create a lot of text content by users who can’t afford professional writers.
Legal job professionals like Paralegals, Legal Assistants and other documentation executives are very likely to be replaced by an AI. These jobs involve consuming large amounts of legal information and then processing it for further use as a legal opinion in a simpler form. So, the point is AI can do these jobs faster, more accurately and reliably.
Market Research Analysts consume the market data for any product or service and convert it into a more digestible form to derive potential insights to increase business productivity. But the fact is, that they take a lot of time to analyze and interpret data. So, AI can easily replace them with efficiency and speed ultimately decreasing the ratio of latest job openings in India.
Although I think AI can never replace a student-Teacher bond. But few reports suggest AI can become highly advanced enough to teach students in the same interactive manner as a human
Financial analysts, personal financial advisors, risk management professionals, etc can be replaced by AI if it becomes advanced enough to analyze and interpret complex numerical data.
“AI can identify trends in the market, highlight what investments in a portfolio are doing better and worse, communicate all that, and then use various other forms of data by, say, a financial company to forecast a better investment mix,” stated Muro, a researcher at The Brookings Institute.
Traders can be very easily replaced by AI, as machines understand the game of numbers more easily than humans. Even now Algo based trading is being practiced with enough capital for trading, which is software based. People who want to pursue their career in the stock market will witness a great fall in job openings for freshers in this sector.
In a December post, Harvard Business pointed out DALL-E, which is an AI tool which can generate graphic images in seconds. So, it can be said that Graphic design jobs can easily be replaced by humans
Accountants also play with numbers preparing the balance sheet and finding out about the company's profits and losses. And now you know at this point AI can play far better than humans in terms of analyzing and interpreting numerical data.
Have heard about Chatbots that are already replacing millions of customer service executives? Companies are relying on chatbots on their dedicated apps and on social media platforms like WhatsApp to answer the queries of millions of customers. And in the future, this will further decline the job openings for freshers because AI will even replace voice-calling executives also.
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