COVID-19 Effect: Nearly 114 Million Indians Lost Jobs In March-April!

MUMBAI: The coronavirus induced lockdown has changed the face of the Indian economy. It is threatening to push more people into penury and unemployment.

Mumbai based think-tank Centre for Monitoring Indian Economy (CMIE) said that India's unemployment rate increased to 23.5% in April. CMIE report says that this was the seventh consecutive wave to record an increase in the unemployment rate from May to August 2017 when the unemployment rate was 3.8.

The unemployment was high in the states of Tamil Nadu, Jharkhand, and Bihar and it was recorded lowest in the states of Punjab, Chhattisgarh, and Telangana. Till May 3rd, the unemployment rate increased further to 27.1%.

Mahesh Vyas, the managing director and CEO of CMIE asserted that nearly 114 million have lost employment between March and April 2020.

According to the reports, the number of employed stood at around 400 million and the loss of 114 million implies that one in every four employed has lost their jobs.

The unemployment rate in rural India was less when compared to that of Urban India. Small, medium, and micro enterprises, multiplexes, railways, airlines, hotels, and restaurants, manufacturing industries were most affected due to the coronavirus triggered lockdown. The daily wage labourers who earn their livelihood have lost their employment and they have been the worst-hit in the country.

Many economists have already predicted a severe recession is going to come in the next coming years. Reports say that India’s GDP may expand 3 percent in the financial year 2021. On the other hand, the government of India is sketching out the plans to attract investments from the companies which are going away from China. As a result, more employment will be generated in the country.

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