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
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