12.2 Crore Indians Lost Jobs In Lockdown

Until a few weeks ago, data on how many Indians have lost their jobs in the unprecedented lockdown was yet to be compiled. Even an estimate seemed to be unavailable. However, the Centre for Monitoring Indian Economy, a private sector revealed that humongous 12.2 crore Indians have become jobless and that too in the month of April alone. This is indeed alarming and unfortunately, lockdown may extend up to mid-June in some cities and the situation looks bleak in terms of employment.

The analysis, which also looked seemingly true is that some IT sector companies have terminated services of staff and are concealing the facts by giving evasive replies to queries posed by the media. Among the 12 crore jobless Indians now, majority of them are reported to be daily wage earners, as well as those employed by small businesses. That means, street vendors and the construction industry have been hit the hardest by the lockdown and the recovery will depend on what stimulus that the government uses.

The uncertainty prevails and there is no guarantee that these jobs will bunce back because lockdown means wages disappearing. The CMIE reported that the unemployment rate until this week is at 24.3 per cent and the situation is getting worse despite restrictions being relaxed with every lockdown phase. Among those who have lost jobs, 3.3 crore Indians are in their 30s, while another 1.4 crore fall under the 25 to 29 age bracket.

The battle to coronavirus pandemic has unequivocally resulted in huge job losses, pay cuts and freezes on hiring over the next few quarters, thereby giving blues to India’s already distressed employment tale. And, now the revelled 12.2 crore figure is a bitter truth, unfolding the reality of the nation’s economy. Talking about India’s economic package for MSME , which was introduced by the RBI and the Centre to increase liquidity, critics have argued that many cash-poor and debt-ridden MSMEs may not want to secure new loans and increase their exposure further in the near-term. Or, at least it is unlikely to serve the purpose of short term and immediate requirements.

Last but not least, the chance of migrant labourers returning to work after lockdown is feeble as the situation has left them to return to their native homes in search of work with no other option. Also, since the chances of second waves of the outbreak seem unstoppable, it is unlikely that workers will return to India’s urban centres anytime soon.