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April 19, 2021
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Unemployment for COVID-hit salaried people only to worsen in coming times, warns CMIE’s Mahesh Vyas

Unemployment for COVID Hit

The COVID-19 pandemic has hit employment prospects of all sections of the society, however, the worst-hit is the salaried class, as their lob loss has now clocked 18.9 million.

There is more troublesome news to come as it is likely to worsen, says managing director of the Centre for Monitoring Indian Economy (CMIE), Mahesh Vyas.

Already battered to the tune of over 18 million, their numbers are going to soar. In July alone 5 million people have lost their jobs in the country. But, the number of jobs for the non-salaried and informal sector has shown an upward trend.

As per data of the International Labour Organization, the pandemic could hit the global working hours by nearly 7% in Q2 of 2020 – equivalent to 195 million full-time jobs.

Unemployment for COVID-hit
Unemployment for COVID Hit

Even in India, the situation is similar to the global trend. Data shared by the National Sample Survey (NSS) and Periodic Labour Force Surveys (PLFS), it is estimated that overall 136 million government and private sector jobs are in jeopardy and at immediate risk, once the pandemic recedes in India.

Taking about how the job losses among the salaried class will diminish Vyas said that there will be a paradigm shift in the Indian market due to the huge impact of the pandemic. The bigger companies will have a sway over the market. They will depend less and less on labor-intensive work while the small and medium companies will vanish. 

According to Vyas, the farm sector—where there was unemployment earlier, has created a surprising number of jobs giving employment to 15 million people. “That is because the farm sector is like your residual camp. If you do not get anything anywhere, you go back home to your villages and you have some mud to shovel around, and you say you are employed on your farm.” 

The consumption power in the overall economy has also slumped as people have chosen to become frugal. It is a direct impact due to income losses and job losses.

Already battered to the tune of over 18 million, their numbers are going to soar. In July alone 5 million people have lost their jobs in the country. But, the number of jobs for the non-salaried and informal sector has shown an upward trend.

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