Economic and Hiring Outlook
By admin at 8 April, 2008, 4:02 am
Like many of you, I am also wondering whether recession is really hitting world economy. More I read about recession, more I get confused. Being employed in a tech firm, I am worried about a full fledged economic recession in tech sector. Now days, it seems journalist and TV reporters working extra hours to dugg out every possible news and talks about US recession. Subprime, housing sectors, fed interest cut etc are regularly getting placed in headlines. Dedicated columnists hired. They wrote endless columns to highlight how recession will affect our economy. How we will get fired and how difficult it will be to find another. Chain mails are flowing and everyone has an opinion. Sometime small facts get exaggerated entirely.
What about management Consultants, the expert of MS word and MS excel? Needless to say, they are not lagging behind to journalists or reporters. This is festive season for them. They conduct surveys among corporate hunks, get opinions, generate reports and send mails to all who have registered for their weekly/quarterly/monthly news letters. Interestingly, unlike other reports where you need to spend (or waste) hundreds of dollars, these recession analysis reports come for free.
I am also a regular subscriber of The Mckinsey Quaterly news letter. This morning I got a mail with a beautiful subject line “Economic and hiring outlook, First Quarter 2008″. McKinsey did surveys among c-grade executives across the world to come up with a beautiful report. Like all other recession stuffs, this report also mentioned features common to any economic recession.
1. Oil prices climbed to record level
2. Inflation affecting every small and big country.
3. China is loosely coupled with US economy. Therefore, US recession will not affect it much.
4. Asian countries will be affected more by USA economic slowdown.
5. As companies are struggling with profit margin, they will try to reduce cost. And firms will do so by firing employees, followed by cutting R&D expenditures, reducing unnecessary cost etc.
Therefore, the moral of this story is stay alerted and do have a backup plan. In case…
You can find this full Mckinsey Report here.
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