Hyderabad: While COVID-19 continues to ravage the country by disrupting normalcy, India currently faces a serious job-loss crisis too. Early in April, the United States of America (USA) was in the news when about 10 million (1 crore) people have filed for unemployment benefits. Several India-based studies reveal that as many as 100 million (10 crore) jobs are at a risk due to pandemic.
The estimated figure is more than what the USA lost during The Great Depression of 1930.
A Mumbai-based think tank raised an alarm about the unemployment rate shooting up to 23.5 per cent as compared to 7 per cent early this year. The Centre for Monitoring Indian Economy (CMIE), in its unemployment tracker mentioned that 122 million Indians lost their livelihood between March and May. Half of them, were daily wage earners who were restored after the Unlock 1.0, bringing the unemployment rate to 11 per cent.
Another 100 million Indian jobs, mostly those of blue-collared, are at the brink of being wiped out due to pandemic.International Labor Organization
The Indian economy was already in its downward slide to recession before the pandemic hit, which makes these statistics worrisome.
Daily wage earners and those employed by small businesses faced immediate wrath in the crisis.
Those in Aviation, Automobile, Tourism, and Food industries would be the worst hit due to COVID-19. The major problem of the aforementioned industries to be the crunch in working capital.Global Consultants: study
Apart from 10 crore jobs at risk now, the ones unemployed before the pandemic stood at 3.5 crores. This will bring the total unemployed to a staggering 14 crore. Urgent corrective measures are the need of the hour.
The Parliamentary Standing Committee in its July meeting raised concerns about the loss of jobs due to COVID-19. However, no concrete plan of action is devised as yet.