New Delhi: The Centre for Monitoring of the Indian Economy (CMIE) has said 122 million (12.20 crore) Indians have lost their jobs during the lockdown. The rate of unemployment in India currently stands at 27.1 per cent in April. It is a sharp rise from the 8.7 per cent in March.
Since the implementation of the lockdown to prevent the spread of the pandemic COVID-19, Indian economy has suffered. The lives of daily wage earners have been affected the most with almost all economic activities coming to a standstill. Except for essential services and the healthcare sector all other businesses have stopped. So people across all segments are facing the brunt of the downslide.
Job losses across all major sectors
Pictures of migrant workers from different parts of India trying desperately to return home have become a common sight. Theirs is the worst hit sector. Among those who have lost their jobs 75% are small traders and daily wage earners.
However, it is not they who are suffering alone according to the CMIE. There have been a large number of layoffs in other industries also. These include sectors like aviation, retail, hospitality, media, automobile, electronics, marketing and a few others. Many small and medium businesses are also shutting shop due to the lockdown.
Lockdown exit plans
The big question is when the lockdown will end. Though the Centre has eased some restrictions in the third phase of the lockdown, many say that is nominal. The third phase of the lockdown ends May 17, but a number of states have said they will extend it. So there is no clear indication as to when the entire country will be free from lockdown.
A lockdown-free India is the need of the hour to boost the economy. However, with coronavirus numbers increasing daily, the chances of a lockdown-free India looks remote at this juncture. This will only lead to loss of many more jobs according to experts.
Harsh facts
CMIE’s figures indeed portray bleak times ahead. The data shows that of the 122 million who have lost their jobs, 91 million are small traders and daily wage earners. Startling however is figures in other sectors, according to the CMIE. It said that 17.8 million salaried people have lost their jobs since the implementation of lockdown. In the self-employed segment the figure in higher – 18.2 million people have turned income-less.
The figures also reveal another startling fact. India’s unemployment figures are four times higher than that of the United States. The Indian government is yet to come out with unemployment figures, but the CMIE figures indeed show that a dark future awaits the people of the country.
Financial package needed
Many feel that a clear picture of the impact of lockdown will emerge in the next couple of months. They have said that the government should put some financial package in place to arrest the economic downslide. “It is imperative that India weighs the economic cost of the lockdown on its people,” Mahesh Vyas, CEO of CMIE has been quoted as saying. “Supply chains need to start working before businesses run dry of finances,” he added.
Since the implementation of lockdown, the month of April has seen Indians lose 122 million jobs. Till May 17, the number will only go up as more and more industries are enforcing cost cutting measures. No one really knows what is in store as till now the virus has shown no signs of waning.
Worrying factor
Experts are also worried because India had gone into lockdown with unemployment at 8.7%. It was much higher than the 3.4 per cent in July 2017. Unless some bailout package is announced soon, the economy will continue to suffer.
Coronavirus is not just killing people across the world. It is also killing futures, hopes and dreams. These are really trying times ahead for humanity with no solution in sight.
Agencies