Transcripts For BBCNEWS Talking Business 20170128 : vimarsan

BBCNEWS Talking Business January 28, 2017

Lets take a look at the weather. Good evening. A little bit of snow across the hills of wales, and some icy patches tonight as well. That mix of weather continues into tomorrow. Some of us will have sunshine, of us will have rain. In the short term it is very hit and miss and it is unclear whether around as well but it is the northern half of the uk with the temperatures will dip away a bit tonight, perhaps one or two degrees above freezing in towns. The forsyth staying frost free for sure, so no ice for the south the far south staying. If you live in the north east, newcastle and the lowla nds north east, newcastle and the lowlands of scotland, and northwards, it should be a sunny crisp day for you. Down south, it should be grisly and unpleasant and that will continue into sunday and even monday to be honest is looking pretty great as well across most of the uk. The week ahead will be a mishmash of weather. From sunny too rainy or the other way around. That is it for now. Hello, this is bbc news with me, reeta chakrabarti. The headlines at 8 30pm chanting no hate, no fear muslims are welcome here president trumps decision to order a temporary ban on all refugees entering the United States has been met by Strong Opposition from a number of nations, including iran. Human Rights Groups have begun legal action to challenge the Executive Order. Meanwhile demonstrations are taking place Atjfk Airport in new york, where some travellers have been detained. The Prime Minister has signed a deal to develop turkish fighterjets, which is worth more than £100 million. Well, the United States is responsible for the United States policy on refugees and the United Kingdom responsible for the United Kingdoms policy on refugees. Stars from Around The World have been paying tribute to the actor sirjohn hurt, who has died at the age of 77. Star of stage, tv and small screen, he was best known for roles in the elephant man, alien and harry potter. Now on bbc news its time for Talking Business. Rapidly growing economies among them india face a problem. Millions of people are joining the workforce every year, but with financial pressures and automation there just arent enough jobs to go around. So what can be done to generate more employment . Thats what were discussing on this weeks Talking Business. Welcome to the programme. Im Yogita Limaye in bangalore. India is the Fastest Growing major economy in the world, yet its among the slowest in creating jobs. This country is growing at a rate of 7. 6 . The growth in the number ofjobs being created is just a fraction of that at i. 4 , and the rate at which people are coming onto the Employment Market is almost double that number. It is estimated india will need Io Millionjobs every year in order to employ a growing pool of young people without career prospects. And advances in technology and automation could mean more bad news. The technology is definitely going to disrupt the jobs market in the future. We would have to work every day to make it happen. We have seen this massive movement, and when we worked with a lot of the companies we have been able to reduce 2000 people, 3000 people, all in their back end, and completely replace them with Artificial Intelligence solutions. Welcome, nice to meet you. One is an Artificial Intelligence experience within the store. From the minute someone walks into a store, rather than having a typical person greet him, explain the product of them, sign him up, things like that, it will all be done by an Artificial Intelligence screen. You can ask me anything. I want to open a fixed deposit. Weve built a chatbot which can communicate with customers, so whenever you log a ticket or a query with the website saying that my cheque book has not yet come in, now instead of a person being at the other end who will understand your query then figure out what to do, it is an Artificial Intelligence engine. That whole replacement is going to really change the way people are hiring now and the numbers there are hiring. You may see by 2020, i think, 100 automation on the low level processes. Things like opening an account, signing up for insurance, all these things which required human checks and validations can sort of be automated already. So how bad is the situation actually on the ground when it comes to creating jobs . Well, to discuss that weve brought together a panel of guests manish sabharwal, chairman of Recruitment Firm teamlease, Kiran Mazumdar shaw, chairperson of Biopharmaceutical Company biocon, and mr dilpreet singh, who is the Vice President of Human Resources at ibm india and south asia. Thanks very much for being here with us today. I am going to start with you. So how bad is the situation actually . Well, i think actually, you know, there is a huge challenge the world over. I thinkjobs growth is something that every economy is facing, and india is not alone. India of course has seen that it has been a pretty tough uphill task in terms of creating newjobs. In the last two decades we have seen 300 Million People come into thejob market, and less than half of them, maybe 140 million, have been employed. And i think this number is steadily declining, so it is. And the population is increasing, so you can see that it is a big challenge. Mr singh, your sector it and if you look more broadly, services, has been a big Employment Generator in india. In the past four or five years, do you think that situation has changed . Is it creating fewerjobs . The jobs have been changing. It has definitely been creating less jobs in 2015 compared to what it was error there, so overall i think what it was earlier. Overall it is about the number of jobs what it was earlier. Overall it is about the number ofjobs created for the gdp, the rate ofjob growth, and for india that has been declining. Also i think in the last decade we have had lower growth than compared to the global average so, yes, we do have a problem. I think you have to be careful with technology. When you asked this question, you said, it has created a lot ofjobs. But there is rounding error in indias river fosse. It pays high salaries and we are proud of them for that but we do not really give a dam about them from a Labour Market perspective in indias gdp. 3 million is a rounding error. What is creating jobs in india . Services. Indias farm to non farm transitions is happening to sales, Customer Services, logistics, the Fastest Growing segment of indias market. India is consumption driven domestic driven economy. We do not have the same Global Manufacturing opportunity china had in 1978. I do not think that is a good thing. I wish we had the same openness to trade and global chances china had for 30 years. India does not have that, so our trajectory of oui not have that, so our trajectory of Ourjob Market may be more domestic consumption than export and manufacturing. So you do not agree that, you know, there are statistics which show our Unemployment Rate is going quite slowly compared to the country in general . Remark i disagree with that. You have added 200 Million People to the labour force in the last 20 years and they have been absorbed somewhere. The jobs problem is notjobs. It is formaljobs, good jobs. I think jobs problem is notjobs. It is formaljobs, good jobs. Ithink he makes a point. If you would get the job market, yes, 50 is self employed and 30 is casual and 20 is formal employment. So i think he makes a point of saying that the biggest problem we have is in this 50 and 30 category where people probably earn less than 10,000 rupees a month, you know. And i think we have a big need to keep jobs take jobs away from the farm and really take it out of the farm and really take it out of the farm and into the services sector, into the sales sector, as he calls it. So ido the sales sector, as he calls it. So i do agree in that respect with him that, yes, perhaps indias challenge and indiasjob that, yes, perhaps indias challenge and indias Job Challenge that, yes, perhaps indias challenge and indiasJob Challenge is slightly different to what you would actually discussed in other parts of the world especially in developed economies. I will slightly diverse year but everywhere i read the country when i travel, every Business Owner i meet, we speak about there being not enough employment generated everywhere around the country. But he says he is struggling to find labour, that there is this huge employability problem. Is there something you see . 90,000 kids come to us for a job every month and we hire about 5000 of them every month and we hire about 5000 of them 90,000 kids. But it is a more complicated problem. It is also the lack of organisation. The jobs are being created in 50 cities but we have 600,000 villagers, and 200,000 of them have less than 200 people. So the physical geography of work. Do you take jobs to people or people to jobs . Work. Do you take jobs to people or people tojobs . It is also becoming a constraint for india. You read one of the leading Bio Pharmaceutical Firms in the world. Lead one off. How difficult is it for you to find people to give jobs to . That is the challenge in most industries because we want to scale up, attain global scale, and to do that you need those high end skills in large numbers otherwise you just find it is a very small talent pool being tapped into by everybody, and therefore youre not really able to scale of the sector. Whilst individual companies can scale up, the sector does not, and you need to scale up that sector. So i think from that Point Of View you really need to focus on developing this large talent pool required to support such a large sector, and thatis support such a large sector, and that is what i think india needs to do. And, you know, talking about that, only 20 formal employment in oui that, only 20 formal employment in our country. What do you think needs to change for that to change, for that number to grow . For us to unleash the Growth Ofjobs i think each of the various arms of the government body, or the biggest parts of the government body, have to really work in sync, because to me that is extremely important. Because if that is not there, you know, it will not happen. To give an example, if you were to have highly skilled people available, and you we re skilled people available, and you were able to do that, but if our banking is not supporting entrepreneurs to come into play, and evenif entrepreneurs to come into play, and even if the banking is supportive but the labour lows are very restrictive, right, then it will not happen, sol restrictive, right, then it will not happen, so i think it is a Systems Approach required if we really want to take up and grow the jobs here. Formalisation isjust. It is not cultural. India is a hot habitat for Intracoronary Rail Ownership and we have 63 million enterprises, and 12 million of them do not have an office, 12 million work from home. Only 8. 5 million enterprises have any tax registration. Only1 million are companies, but there are only 18,000 companies in india with a paid up capital of more than 1. 5 million. 0 paid up capital of more than 1. 5 million. So that means nothing. But there is nothing cultural about this. I resent it when people go on about indian informality. At best, thatis about indian informality. At best, that is the soft bigotry of low expectations and at worst it is racism. There is nothing informal about it. If you fix the regulatory Cholesterol Formality could go from 20 to 80 of the labour force, which is what they were attempting to do, but there will be lots of other initiatives over the next hopefully 2 3 years. Other initiatives over the next hopefully 23 years. What specifically do you want to see change . If we can deregulate and actually free up these new Emerging Industrial Opportunities like e commerce, i think you can create a large number of jobs. Companies e commerce, i think you can create a large number ofjobs. Companies like uber, between them, they have created a million driverjobs, no mean feat. Although they are having a tough time with every State Government wanting to rain them in. And the same is true of various E Commerce Companies were again the kind of regulations are stifling them. Overall, what are we seeing . Entrepreneur, the investor, Orthe Organisation should have the flexibility of being able to take the risk of starting the organisation what we saying . And if it is not going well they should be able to let somebody go to harry later, or for example the flexibility of the labour lows will encourage organisations to adopt automation, more productive to hire them later. And that is more productive because it generates cash and when you have that you can reinvest into different areas to create more jobs. Mr xxx, thank you for being with us. Important to have a view from the it sector, which india is known for globally mr singh. In the second part we will be discussing, what are the jobs of the future . But first, here is our Comedy Consultant with his thoughts on this weeks talking point. Comedy consultant with his thoughts on this weeks Talking Pointlj Comedy Consultant with his thoughts on this weeks talking point. I am here at dublin city universitys innovation lab, in an empty office 0011 innovation lab, in an empty office soon to be occupied by innovative companies, and i am thinking about jobs of the future. Predicting the future is a mugs game. In fact we do not even know if there will be mugs, as they will probably be disrupted by some new receptacle. In the future, whatever happens, billions of people will arrive on planet earth and they will need something to do to occupy their time. The question is what are the futurejobs . Time. The question is what are the future jobs . There is time. The question is what are the futurejobs . There is nothing like being Ina Futurejobs . There is nothing like being in a big empty office to concentrate the mind on whatjobs might be like in the future. This is like a blank sheet of paper. The possibilities are endless. The challenge of an empty office is how to fill it with jobs, and what are those jobs to fill it with jobs, and what are thosejobs going to be . Right, thats enough speculation from me. Lets top to the people who are thinking properly about future jobs. Lets talk. The people training the next generation. This is what they call the fourth technological revolution, a combination of different technologies such as ict, microelectronics, nano electronics, all coming together in a convergent way to provide new products and services, and there are skilled needs and requirements there for people having these new combinations of skill sets. Thinking about the future, it is also important to keep an ion the past. The miners, farmers and weavers of previous centuries have gradually been replaced by the marketing technicians, the product evangelists, and the strategic enablers of the present. But the March Of Time is inevitable, and change will continue. When you speak about newjobs, change will continue. When you speak about new jobs, a change will continue. When you speak about newjobs, a lot of newjobs are actually evolutions of existing jobs or professions. The salespersons roll and job is definitely evolving. Maybe we think it will be ten years from now, but Many Companies will struggle to just sell a product. I Many Companies will struggle to just sella product. Ithink Many Companies will struggle to just sell a product. I think the Many Companies will struggle to just sell a product. Ithink the Product Isjust a feature sell a product. Ithink the product is just a feature that delivers a benefit, and you need to be able to share in the cost of the features and also share in the upside of the benefits. We see our salespeople now as originators of deal flows and allocators of our firms capital, and that is a vastly different way of looking at a sales position than you will get at, say, a traditional lighting firm. So on reflection it seems there is no time like the present to prepare for the jobs of the future. You can watch more of his films at bbc. Com talkingbusines. We will continue our discussion here. We are also joined by the co founder of an Online Grocery delivery service. Thank you very much for being with us. I will start with you. Almost 70 ofjobs in india are said to be at risk because of changes in technology. Is that something you agree with, something you are seeing something you a

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