The Covid-19 pandemic, which led to a wave of infections in March 2020, brought the whole country to a standstill. Nation-wide lockdown was imposed, and movement of public was restricted. Many of us were fortunate enough to be in the comfort of our own homes, away from harm and any form of risk.  But for many unfortunate people of our country, this pandemic just made things a lot harder than they already were.

According to recent studies, the poverty rate of the country, during the first wave in 2020, almost doubled. Crores of people lost their jobs and livelihoods. The pandemic disrupted almost all the industries in the last year, leading to huge job losses across both, the formal and informal sector of the economy. For a nation that managed to reduce the poverty rate from 2011 to 2019, 2020 came as huge blow, and disrupted the progress that the country had achieved.

The number of individuals, that had incomes below the minimum wave threshold income (less than 375Rs), increased by 230 million during the pandemic. Incomes decreased all throughout the country, but the economically weaker section took a larger blow, with the poorest 20% losing their entire income.

During the lockdown, 61% of men remained employed, and 7% lost employment. This ratio was lower for women, where, only 19% remained employed and 47% suffered a permanent job loss during lockdown. Most of the women, who were unemployed, did not return to their work field even after restrictions were lifted.

The reports show that younger workers were much more impacted, they experienced higher losses and of a more permanent nature. Households have coped by reducing food intake, borrowing and selling assets and properties.  People had to dig into their meager savings for survival. People have stopped the basics like lentil as food inflation has spiked.

 

Cut to 2021. Rural Indians which compose the informal workforce have lived with irregular jobs for over one year now.  What exactly does one mean by ‘informal work force’?  The informal sector consists of low-skilled laborers who are desperate enough to work for miserly wages in order to meet their daily requirements. Due to this constant need of jobs, the employers can control the pay and the work hours which, in some cases, are inhumane and brutal. These informal workers have no safety net to fall back on and hence are in a very dangerous situation.

As per June 1, 2021, India’s economy contracted 7.3 percent, its worst recession since independence.  The government has faced growing criticism for focusing on loans to hard-hit businesses rather than direct cash handouts to vulnerable households. The focus, currently, should be to make sure that every citizen of this country is above the poverty line.

Social safety net transfers should be more prevalent, so that during an emergency, the family or individual has funds to fall back on. For employment of women, microfinance loans should be given, but it should be paired with extensive training and knowledge as to how it can help them learn new skills, and in turn help them start earning.

If we don’t make any changes, the second wave of pandemic will paralyze the economically weaker sections, who have just recovered from the first wave of the virus. These are all citizens of this country, and yet, they are being treated differently. Every job is important, and deserves respect and acknowledgement.  How can we progress as a nation, if 28% of our population is below the poverty line?

 

References :
Deccan Herald 29/5/21

DAWN 01/06/21