3 Powerful Ways To Overcome Inflation
India is facing some significant challenges due to the rising inflation rate. Owing to a multitude of reasons such as a long-reigning pandemic, the Russia-Ukraine war, and collapsing economies, one of the most affected sectors is the blue-collar job sector, which is struggling to keep up with the wave of increasing prices of common goods and services.
In this article, we will discuss the impact of inflation on blue-collar jobs, practical tips to fight inflation, and how Inflation affects the Indian economy.
We will also explore the reasons for these core challenges and the measures that can be taken to alleviate the impact of inflation on this vital sector.
What is Inflation?
Starting from the basics, Inflation is the rate at which the general price level of goods and services increases over time. In India, inflation has been a persistent problem for the last few years. In 2022, India experienced an inflation rate of 5.5%, which is higher than the previous year’s rate of 4.9%. This rise in inflation has affected the Indian economy in many ways, including the blue-collar sector jobs.
The International Monetary Fund isforecasting 4.0% growth in emerging markets and developing economies in 2023, 0.3 percentage points higher than its October forecast and 0.1 percentage point higher than the 3.9% estimate for 2022. The forecast for 2024 climbs up to a 4.2% rise.
Understanding Blue-Collar Jobs in India
Blue-collar jobs refer to the sector of occupations that involve manual labor, such as carpenters, security guards, construction workers, welders, electricians, plumbers, factory workers, and many more.
These jobs are often considered low-skilled and low-paying, but they are essential for the Indian economy’s growth. An estimated 500 million workers fall into this category, which suggests a significant amount of India’s workforce.
Impact of Inflation on Blue-Collar Sector Jobs
The rising inflation rate has a severe impact on blue-collar sector jobs in India. After a hard-hitting 2.5 years of Covid induced disruption, India is on a positive track to growth.
Despite the layoff season that’s taken the economy by storm, the demand for blue-collar work is still pretty optimistic. However, it doesn’t take away from the harsh reality of financial troubles that the price hike has brought on.
As the amount of goods and services increases, the purchasing power of these workers decreases, which brutally affects their standard of living.
Let’s take an example, suppose that the cost of essential commodities such as food, water, housing expense, and transportation has increased, making it challenging for these workers to reach their day-to-day expenditures.
This scenario has pushed the worker to extreme stress, compromising on survival and overall fatigue. Which in turn, has led to a decline in their overall job satisfaction and motivation.
Another notable impact of inflation on the blue-collar sector is decreased job opportunities. The wave of inflation affects everyone and leads to cost-cutting in services to save money, which may benefit the working class but leads to job losses for blue-collar workers.
Read more: How Has The Pandemic Changed The Future Of Work?
As businesses struggle to cope with the rising cost of production, they tend to cut back on hiring new workers. This, in turn, leads to a decrease in job opportunities in the blue-collar sector.
Actionables to Mitigate the Impact of Inflation on Blue-Collar Sector Jobs
To cushion the blow of inflation on the blue-collar sector, the Indian government and the companies collectively can take several measures. Despite the fact that inflation has led to cost-cutting measures in various organizations, it is undeniable that discussion for growth is imperative.
Let’s review some of the ways to help blue-collar workers during inflation:
Reconsidering Minimum Wages
Starting with reconsidering the current minimum wage for blue-collar workers and working on increasing it to match the current state of the economy. This singular move holds tremendous power as it can help them cope with the growing cost of living and support their livelihood as well as their purchasing power. The service sector owns up to60% of the 200 million job market and is severely burdened by the lack of initiatives.
In India, the minimum wage payable is fixed by the 1948 Minimum Wage Act. As per reports, the minimum wage rate in India is ₹170 per day or ₹4,500 per month. Addressing this issue must be taken into consideration as a base step.
Price Freeze
The government can also implement price controls on essential commodities such as food and fuel. This can help prevent the prices of these commodities from skyrocketing and keep them affordable for the common man. Another measure is to encourage businesses to invest in technology and automation to reduce their production costs. This, in turn, can help businesses maintain their profit margins without compromising on the quality of their products.
Investing in Opportunities for Growth
It is important for companies and governments to identify sustainable growth possibilities. With a sudden rise in AI, automation, and technology, it is undeniable that to flourish in this expanding area, workers need to adapt and upskill.
Find here a detailed list of growth opportunities in each sector. Additionally, you can check out our Skill Section on OTU App and enroll yourself in free courses.
Conclusion
Inflation is a significant challenge for the Indian economy, and the blue-collar sector jobs are the worst affected. The rising cost of living has made it difficult for these workers to meet their daily expenses and has led to a decline in their overall job satisfaction and motivation.
To understand the impact of inflation on this critical sector, the government needs to take actionable steps to address this issue. These tips may include progressive reforms such as increasing the minimum wage, implementing price controls, and encouraging businesses to invest in technology and automation.
By doing so, we can ensure the sustainable growth of the Indian economy and improve the lives of millions of blue-collar workers.
FAQs
- What is inflation? Inflation is the rate at which the general price level of goods and services increases over time.
- What are blue-collar jobs? Blue-collar jobs are occupations that often require manual labor, such as construction, security guards, drivers, maids etc. They also comprise gig workers such as delivery boys.
- How does inflation impact blue-collar sector jobs in India? The rising inflation rate impacts the purchasing power of blue-collar workers, and with their low wages and abrupt work, it affects their standard of living and job satisfaction. It also leads to a decrease in job opportunities in the sector.
- What measures can the Indian government take to mitigate the impact of inflation on blue-collar sector jobs? The government can increase the minimum wage, implement price controls, and encourage businesses to invest in technology and automation to reduce production costs.
- How can businesses cope with the rising cost of production due to inflation? Businesses can invest in upskilling and automation to reduce production costs without compromising on the quality of their products.
- What are some hiring tips during inflation? Be in line with your budget and estimate correctly. After all, overestimating the hiring capacity is the leading reason for layoffs all over the world.
Ending note
Inflation may still be rampant however, with corrective steps, we can mitigate the impact of inflation on this critical sector. It is essential to prioritize the well-being of blue-collar workers and ensure their sustainable growth, which is crucial for the overall growth of the Indian economy.
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