Market meltdowns are reinstating Indian unemployment concerns

As global markets start tumbling, many employees are getting kicked out their offices

Ending a long-running bull market's run, an up-and-coming economic headwind is curbing everyone's optimism. If we turn the clock back to the end of 2021, we remember countries coming out of the pandemic's grips. Markets started feeling positive, bringing us into a much-needed bull market.

Now, as market optimism has hiked to an all time high since the beginning of this new decade, the confidence levels have began their plunge. Every market, no matter which country, is falling. The US market has been all red, and the Indian market, like Hong Kong's, is following the same pattern. Cryptocurrencies, which are a good indicator of market speculations and their projections, have fallen to values below a single dollar.

Now, the impact has moved out of the number's game and has entered the real world. Brick-Mortar stores and start-ups are not the only businesses that are suffering. Large companies like Ola, crypto.com, Netflix, Cars24, and BYJU's have begun major downsizing projects. More than 12,000 tech startups have lost funding, and 60,000 employees have lost their jobs this year alone. There, basically, is blood on the streets.

Experts have warned markets that more than 1,10,000 people would lose their jobs by the end of this year.

India has had a long-running issue of unemployment due to its large population. That issue worsened due to the pandemic - and now a bear market is making the situation dreadful.

Unfortunately, the United States Federal Government has increased the interest rates. This has two effects in the States - decreasing expenditure rates and increasing rewards on savings. Therefore, the government is looking toward reducing cash flow in the market. However, that is not all.

The States market is significant for many businesses across the globe. Many Indian companies are funded directly by many States' businesses - therefore - them facing a downturn will make India meet one too. The Indian government is focusing on restructuring its 2022 budget and taking action to improve market sentiments.

Fortunately, for the Indian market, we are closing towards our festival season. Starting in August, the market is projected to feel a new level of optimism due to Rakhi and Diwali. Nonetheless, the Indian government must stabilise the dire situation we find ourselves in today to ensure that actual businesses remain to enjoy the upcoming optimism.

Conclusively, we can understand that the entire globe is crashing. The Indian market like all markets is taking a hit. However, not all markets face such a high degree of unemployment concerns as India does - actions must be taken soon. There is hope around the corner, however, decisions must be made to soften the fall we are facing.