The Devastating Impact of Recession on Students
Recession being the present talk of the town, where people are left to choose between the government's opinion of least chances of India to be hit by recession while the private giants predict recession in the last quarter and have started freezing development plans, product/service launch and hiring in order to curtail their expenses.
According to Global Employment Trends for Youth estimates, the overall number of young people without jobs worldwide will reach 73 million in 2022, a small increase from 2021 but still six million more than the pre-pandemic level of 2019.
As per the “Insider Higher Ed'' news the year 2022 has witnessed a steady decline of 7.5% in college enrollments. The recession's impact on an economy is often seen like a falling stack of cards, markets collapse depending on the external elements and the connection between the markets. Education is one of the markets which faces the impact in a wider way as it is this industry that adds new workforce by creating professionals.7 out of 10 students face the recession impact, while the admission or filling of seats process falls by more than 50%.
The declining income leads to higher drop-out rates, some reach out to borrowing through student loans while others postpone their enrollment into higher education. Recession brings down the number of student immigrants. As a result, scholarships or education aid too goes down.
Low pay, Student aid cut, Higher Education postponed
On an average 6.5 million graduates enter the Indian workforce every year. The number of graduates forms a major part of the contribution of the entry of new workforce into the market each year. Making the Software Employment race more competitive creates a need for upskilling, better performance and swift performance. Software Development Companies majorly prefer people who have a balance of skills and experience, which ensures smooth work process and sound balancing. Shared below is the data of employment rate of graduates of the past decade.
Recession impacts employment at a greater rate, bringing in salary cuts, benefit cuts, job losses, freezing of recruitment and much more. The companies postpone different types of training and developments. As a part of cost-cutting, they also lay down employees, employee performance reports for the last 3 years are scanned and a call is taken depending on the performance reports. Layoffs are also made on the basis of last in, first out, creating a list of employees in probation. Putting the new workforce careers at stake.
Like the global workforce, students who are pursuing graduation and students who have recently graduated face difficulties in balancing their career during recession. However compared to the existing market workforce the graduates are hit with employment and career issues right at the beginning of their professional careers.
(Author: Alisha Fernandes is an inquisitive learner & content writer at TechDoQuest)