Situation on jobs is not as bad as one perceives it to be, says Citi’s Samiran Chakraborty

Citi’s Chief Economist, Samiran Chakraborty has written an interesting report on the state of the economy. In his report, Chakraborty says that the net payroll addition has remained positive. According to him, incremental growth is 40 percent lower year-on-year (YoY), but it is not a net job loss.

Chakraborty believes that the situation on jobs is not as bad as one perceives it to be. According to his report, 2,300 companies that announced results, have shown a wage increase of 1.9 percent YoY. Finance, telecom and IT has seen 14-15 percent YoY growth in wage cost.

According to Chakraborty, the only sector which has seen a decline in wage cost is labour intensive. Chakraborty believes that there may be more job losses if consumption sentiment remains weak beyond 2-3 quarters.