Net result of this situation is that employees' expectations of salaries have risen considerably all over the country in all sector. While the governments which earn money from the tax payers can afford to pay high salaries and if necessary by increasing the taxes, private sector cannot do this.
More than 90% of the jobs are in the private sector as well as in unorganized sector. In such conditions, reduction of the number of employees due to high pay expectations has become a pre condition for private companies to survive economically. Because of the pressure of salaries, most private companies have reduced the manpower considerably and resorted to automation , outsourcing etc. This is happening in the case of government departments also, where vacancies are not filled up.
In the case of unorganized sector too and in farming operations, manpower needs have been considerably reduced by resorting to mechanization. Amongst those in the middle income group, who constitute more than 90 percent of national population, one thinks several times before engaging labour and keep it to minimum due to high wage demand.
It is high time that deep investigation has to be been done as to whether undue salary increase is leading to loss of job opportunities in India.
Nandini Voice For The Deprived