54% firms foresee job losses when lockdown is lifted: CII Poll

Our Bureau | Updated on: May 03, 2020

Around 54 per cent of firms foresee job losses in their sectors after the lockdown ends, according to CII CEOs Snap Poll.

The survey, titled ‘Covid-19: Impact on Economy and Industry,’ said 45 per cent of the participants expect 15 to 30 per cent cut in jobs. However, allaying some concerns, nearly two-thirds of the respondents reported that they have not experienced a salary/wage cut in their firms so far.

The survey saw the participation of more than 300 CEOs, of which nearly two-thirds belonged to MSMEs.

The poll mentioned that 65 per cent of the firms expect revenues to fall by more than 40 per cent in the current quarter (April-June 2020).

For FY 2020-21, the expectations of a fall in revenue are staggered, with 33 per cent of the firms anticipating a revenue fall of more than 40 per cent, closely followed by 32 per cent of firms expecting a revenue contraction ranging between 20 and 40 per cent.

“While the lockdown was necessary to mitigate the impact of Coronavirus on the population, its has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance, besides calibrated exit from lockdown,” said Chandrajit Banerjee, Director General, CII.

Around 45 per cent of the respondents feel it will take more than a year to achieve economic normalcy once the lockdown ends. With respect to their own companies, however, the respondents anticipate a slightly quicker recovery, i.e. within 6-12 months with 34 per cent of the respondents indicating the same.

Published on May 03, 2020
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