Covid triggered Unemployment

The covid – 19 pandemic has triggered the common issue of unemployment in our country. The real danger is this crisis will eventually increase the poverty and economical inequalities and will have an impact on our economy for years to come.

The government has imposed lockdown to control the spread of corona virus. As a result, it has impacted on the economic and commercial activities of our nation and effected into job loss and migration of migrant workers which trembled the entire nation.

This Job crisis shows no sign of slowing as the impact of corona virus continues to batter almost every sector now.

The economy has hit hard by this pandemic particularly the informal economy. Around 20 crore 12 lakh people lost their job in April 2020 as per CMIE (Centre for Monitoring of Indian Economy) and 74 lakh people lost their jobs in April 2021 as per CMIE. Apart from job loss the household incomes have also fallen down sharply. The CMI has also said that 97% of households has seen fall in income as a result.

India’s Unemployment has increased from 7.97% in April to 11.9% in May. While unemployment is high, future too isn’t looking very bright. Our traders who were looking forward to recover from last year’s shutdown didn’t got the relief due to Lockdown 2.0. While big businesses are suffering losses whereas the small ones are permanently shut down.

The present constraints are majorly predominant in urban India, where most of the salaried jobs are. According to employment data from 2019-20, urban India accounted for 58 % of all salaried jobs in the country. The job loss in urban India during 2020-21 was, however, only 38 % of the total job loss of 9.8 million, as per the CMIE report. This means that urban India will observe further salaried job loss over the course of the year.

Migrant and labor forces:

Migrant workers constitute one of the weaker sections of the society and this pandemic has rubbed salt to their wounds. Due to lockdown, daily wage workers are left with no work. Besides job losses, the migrant workers are facing another reality – hunger. Unemployment in 2020 had left these labors and workers with little or no savings, and now jobs are scarce and living costs have gone sky high.

Farmers and primary sector:

Farmers are crucial part of the food value chain in India. They are the most significant element of the global food system. This pandemic has brought new risks which have threaten the livelihood and food security. Every year, Indian farmers face risks such as low rainfall, price volatility and rising debts. But risks from the COVID-19 pandemic are putting new challenges in front of a sector that is already under threat.

Women and Youngsters:

According to reports, women saw a larger decline in job losses in India than men. Covid also created turmoil in Young people’s lives by taking their jobs away. The youth share of total employment loss was 15-18 times greater than their share in total employment. This is pathetic. The pre-crisis challenges are now amplified due to covid – 19 hit.

Reference –

  1. https://www.thehindubusinessline.com/news/rising-unemployment-adds-to-the-covid-pain/article34628576.ece
  2. https://qz.com/india/2011017/covid-19-may-leave-thousands-of-indians-unemployed-forever/