No change in Q4 workforce, says D&B survey

BANGALORE: A majority of businesses in India anticipate that there will be no significant change in the size of their workforce during the fourth quarter of 2008, as per a survey conducted by research firm Dun & Bradstreet.
About 59% of the respondents intended to keep the number of employees unchanged. 37% of the respondents expected an increase in the number of employees.
Among sectors, the basic goods sector showed a greater inclination towards increasing the number of employees, said the study conducted across all sectors, surveying about 400 companies, during September 2008.
"There might be some layoffs as companies might look to trim costs. These companies might layoff the worst performers and bring in a more realistic view of wage expectations," said Kaushal Sampat, COO of Dun & Bradstreet. "Companies might not hire more people, but on the whole the job cut worries are way out of proportion."
About 66% of the respondents expected an increase in profits during Q4 2008, while only 5% of respondents anticipated a fall in their net profits in the forthcoming quarter.
Amongst sectors, the services sector was the least optimistic, with more than 40% of respondents expecting a decrease or no change in net profit during Q4 2008. The services sector was also least optimistic on volume of sales and new orders.