The second wave of Corona led to the loss of jobs of more than 1 crore Indians in the country and the earnings of more than 97% of the families have declined. Mahesh Vyas, CEO of private think tank Center for Monitoring Indian Economy (CMIE) has said this. He says that by the end of May, the country's unemployment rate could come down to 12%. The unemployment rate in April was 8%.
The unemployment rate reached a record 23.5% in May due to the nationwide lockdown last year. Many experts believe that the peak of the second wave of infection is gone. Now the states will gradually remove the restrictions on economic activities. This will help the economy.
side effects of corona on employment
Those who have lost their jobs will hardly get employment again.
Jobs in the unorganized sector will soon be available, but it will take up to a year to create quality jobs and employment opportunities in the organized sector.
The economy is starting to open. This will solve the problem of unemployment to some extent, but it will not eliminate the problem.
At present, the labor participation rate in the market has come down to 40%. The labor participation rate before the epidemic was 42.5%.
The unemployment rate of 3-4% normal for the Indian economy
Vyas said that the unemployment rate of 3-4% is normal for our economy. The unemployment rate will decrease further. CMIE conducted a nationwide survey on 1.75 lakh families in April. The survey revealed a disturbing trend of earnings in the last year. In the survey, only 3% of the households said that their income had increased, while 55% said that their income had fallen. The remaining 42% said that there was no change in their income. If it is calculated in terms of inflation, then the income of 97% of the households has decreased.
The urban unemployment rate approaches 18%
According to the latest CMIE data, the unemployment rate in the urban area has reached close to 18% in the week ended 30 May. According to the data, the unemployment rate in the urban area has been 17.88%. While the unemployment rate at the national level during this period has been 12.15%. According to the data, the urban unemployment rate has increased by 3% in the last 15 days. While the urban unemployment rate stood at 10.8% in the week ending May 2.
The unemployment rate decreased by 4% in a rural area
According to data from CMIE, in the week ended May 30, the unemployment rate in rural areas fell to 9.58%. There has been a decline of 4% in the unemployment rate in rural areas as compared to 15 days ago. Labour force participation rate in the urban area for the week ended 30 May has been 35.69%. Whereas in the week ending May 16, the labor participation rate in urban areas was 37%.
The unemployment rate will remain high in an urban area for 6 months
Labor economist KR Shyam Sundar says that the unemployment rate in urban areas will remain high for 3 to 6 months. There are three main reasons for this.
First reason: fewer employment opportunities.
The second reason: companies hesitate to hire more employees.
The third reason: increased exposure to labor due to scientists' study of coronavirus spread through the air.
Limited employment opportunities in sectors other than IT
KR Shyam Sundar says that there are limited employment opportunities in all places except IT and its related sectors. If we look at the unorganized sector, hospitality and tourism sector including FMCG, retail trade, automobile, urban markets, then there is nothing to be happy about. The business sentiment has dropped. There is a decline in consumption. We are facing a cyclical or circular crisis.
Corona epidemic statistics in the country
Total new cases came in last 24 hours: 1.26 lakh
Total cured in last 24 hours: 2.54 lakh
Total deaths in last 24 hours: 2,781
Total infected so far: 2.81 crore
So far cured: 2.59 crores
Total deaths so far: 3.31 lakh
Total number of patients currently undergoing treatment: 18.90 lakh
Nirmala Sitharaman will hold a meeting with the heads of public sector banks today, many issues can be discussed
Finance Minister Nirmala Sitharaman will hold a meeting with the heads of public sector banks (PSBs) today i.e. on Monday. In this meeting, the Finance Minister will discuss the performance of
Is Putin's statement on the Taliban a setback for India?
Russian President Vladimir Putin has said it is possible to remove the Taliban from the list of terrorist organizations. But at the same time, Putin also said that it should be done at the level of
Corona Updates: 56,017 patients were found in the country in 24 hours, 656 deaths; 71% active cases in 5 states including Kerala and Maharashtra
In the last 24 hours, 56,017 new cases of corona infection were found in the country, 1.49 lakh patients were cured, while 656 people died due to corona infection. There has been a decline of more
India's blunt answer on Trump's tariff war, Centre said- 'No agreement has been reached yet'
Union Commerce Secretary Sunil Barthwal on Monday told the Parliamentary Committee on Foreign Affairs that talks between India and the US are still going on and no agreement has been reached on trade
Manipur Violence: Violent protests again in Imphal, DC office vandalized; burnt two vehicles
A fresh incident of student-led violence broke out in the Manipur capital on Tuesday after photographs of the bodies of two youths who went missing in July went viral on social media. Violent protests
Who is the new CM of Maharashtra?: The suspense was not cleared in the meeting with Shah; after Delhi, the final decision will be taken in Mumbai
Amid the ongoing tussle for the post of Chief Minister after the Maharashtra Assembly elections, a meeting of the Mahayuti was held at Amit Shah's house in Delhi on Thursday. Shiv Sena chief and
Was poison found in Mayank Agarwal's water? The cricketer complained to the police; Something like this happened in the flight...
Indian opener and Karnataka captain Mayank Agarwal was admitted to a local hospital on Tuesday after falling ill before boarding a flight to New Delhi. The cricket world is shocked by this incident.
The murder of social media influencer: Body found in a car in the parking lot of a private hospital in Bathinda, truth revealed after a foul smell
The body of social media influencer Kamal Kaur alias Kanchan Kumari was recovered from a car parked in the parking lot of a private hospital located on the Chandigarh National Highway in Bathinda on
Twitter: Elon Musk closes Twitter offices, hundreds of employees have resigned
Twitter Offices Shut Down: Everything is not going well on Twitter at the moment. Elon Musk, the new owner of Twitter and the world's richest man, has made many changes in the company. Now Twitter has
Budget 2022 Highlights: Nirmala Sitharaman made big announcements regarding jobs, houses, farmers, and crypto in Budget 2022, read the full speech
Union Finance Minister Nirmala Sitharaman presented the Union Budget 2022 for the financial year 2022-23 amid the serious situation of coronavirus infection. He made big announcements for many sectors
