We’ve started hearing stories of people losing jobs in IT & BPO due to automation. Also, the pace of recruitment in these sectors is slowing down. The number of new jobs created in next few years would be far lesser than what was created in the past. Many roles are becoming redundant. The starting salary for a fresher has been constant around 25K per month for last very many years.
Also many IT & BPO companies have started going for contract workers. In the coming decade, automation, robots and temporary staffing can change the way we look at jobs and career.
Soon factory floors may have more robots than human workers. There may not be any need to outsource manufacturing jobs to low wage countries.
Every month, in India, we are adding one million people to the job market. In 2020, we would have 900 million people of working age. Though as an economy we would continue to grow, the job growth may not be on par with economic growth. Skill development and providing employment opportunities would be a major challenge for the government.
We need to get used to temp employment. Temp employment means constant upgradation of skill and knowledge. This only would ensure that there are further opportunities after an assignment gets over. Investing in oneself would be the primary investment requirement. Without human capital, it would be difficult to generate and grow financial capital. We need to adjust ourselves to increasing life span and decreasing career span.
Normally we suggest having an emergency fund equivalent to at least one year of expenses. Considering the breaks one’s career may have, emergency fund need to be 2 to 3 years of expenses. Many do not take individual medical cover, as it is provided by the employer. Given the changing dynamics, individual medical cover would be mandatory. Otherwise any medical emergency can make us bankrupt.
At the moment, it is still difficult to envisage how job markets would be after 10 years.But those who would keep updating their skills and knowledge would always be in demand. Mere certifications or degrees would not be of much use. What matters is what you can ultimately deliver.
Financial planning would become all the more important as expenses are always certain while income may be uncertain.We are in for interesting times.
As I always say, the best antidote to uncertain future is financial independence.
Go for it.