Unemployment : A problem that largely multiplied after the advent of Corona Virus

Article by – Shishir Tripathi
Intern at Hariyali Foundation
In collaboration with
Educational News

An individual for living a life with pride and respect with a roof above the head and Food on the dining table, a steady employement is required. But after the arrival of Covid19 into the scenario the whole situation has been changed and the virus has affected a lot of bindividuals’ livelihood to a very great extent.

The economy was suffering since the slowdown which came into the country after the year 2018-19. The automobile sector wasthe kne which was affected to the maximum extent.  Sales were low and the market was lesser and lesser demand from the marketside and as a result after the end of the fiscal year, a lot of inventory was left with the automakers.

India’s automobile industry accounts for 49% of the country’s manufacturing GDP, and it directly and indirectly employs 37 million workers. According to the Society of Indian Automobile Manufacturers (SIAM), 3, 50,000 jobs (mostly contractual) have been lost because of this slowdown and over a million are at a risk due to plant shutdowns and bankruptcy of dealers and component makers.

The services sector is the largest sector in India. The services sector accounts for 53.66% of total India’s GVA of Rs. 137.51 lakh crore. The industrial sector is at the second spot and contributing around 31% of the Indian GDP.

As many as 41 lakh youth in India lost jobs due to the Covid-19 pandemic with most job losses in the construction and farm sector, according to a joint report by the International Labour Organization and the Asian Development Bank.
Youth will be hit harder than adults (25 and older) in the immediate crisis and risk bearing higher longer-term economic and social costs, said the report.

There are job disruptions in the form of reduced working hours and earnings, and job losses for both paid workers and the self-employed; disruptions in their education and training; and difficulties in transitioning from school to work, and moving between jobs in a recession.

Data from the Centre for Monitoring Indian Economy (CMIE), an independent body that measures and tracks economic indicators, has said that salaried jobs took a big hit during the COVID-19 lockdown, with the total loss estimated to be at 18.9 million during April 2020-July 2020.

The plight of salaried employees has worsened since the lockdown, with a loss of 17.7 million salaried jobs in April, additional 0.1 million jobs in May, followed by a gain of 3.9 million jobs in June and then again a loss of 5 million jobs in July.

Salaried job loss are very rare, but once lost they are further so difficult to be retrieved again. Another report says that salaried jobs were nearly 19 million short of their average in 2019-20.

As per the World Economic Forum (WEF), the Coronavirus pandemic is putting up to 50 million jobs in the global travel and tourism sector at risk. Of the 50 million jobs that could be lost, around 30 million would be in Asia.

Data from bloombergquint.com, timesofindia.com and theeconomicstimes.com

Moving ahead from the data of organized sector, there’re huge job losses in the unorganized or informal sector where there are no regulations, no rules and hence no correct data. Over 122 million people in India lost their jobs in April, according to estimates from Centre for Monitoring Indian Economy. Around 75% of them were small traders and wage-labourers. Local manufacturers previously also were not in a very good state because of big foreign producers availing goods at cheaper prices, but after the lockdown and the corona virus, their condition have turned to be even more inferior.

Small street food sellers, vendors who generally earn on daily basis, without savings and without sale have shut down their small business and are in a very bad state prolonging to have some credit and start the business again.

Even after introduction of various budgets and relief funds by the department of finance but still, daily wage labourers, and the small businesses are still suffering. Though the relief funds and other budgetary measures are taken by the government but this help is not reaching to the people at the root level. Proper disbursement of financial help directly to all the concerned groups should be there and the benefits of the schemes and other employment generation programs should reach to every sufferer.

Cumulative efforts by the government and other bodies will help the working population and various business to grow again and retaining their same positions like earlier in comparatively lesser time.

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