Impact of Covid-19 on Employment

 

According to CMIE’s Consumer Pyramids Household Survey, employment in India fell from 408.9 million in 2019-20 to 387.2 million in 2020-21 and then it recovered to 401.8 million in 2021-22. Evidently, the recovery in 2021-22 was inadequate. Employment was still 1.7 per cent or 7 million short of the employment level of the pre-pandemic year of 2019-20. This loss of 4.5 million jobs because of the pandemic is the more lasting net impact. The immediate impact was much bigger. Nearly 100 million jobs were lost during the quarter of June 2020 which roughly coincides with the first wave of the Covid-19 virus. Similarly, 13 million jobs were lost during the second wave in the quarter of June 2021. While the rate has improved since then, it remained elevated in the months following the initial outbreak.

(Unemployment Rate 2019-22)

Industry Impact: Certain industries were hit harder than others, with hospitality, tourism, and retail suffering the most significant job losses. A report by the International Labour Organization (ILO) estimated that the COVID-19 pandemic could lead to the loss of up to 25 million jobs in India's tourism and hospitality sector alone.

Migrant Workers: The pandemic had a particularly devastating impact on migrant workers, many of whom lost their jobs and were forced to return to their hometowns. The ILO estimated that around 400 million workers in India were at risk of falling into poverty due to the pandemic, with migrant workers among the most vulnerable.

Government Response: To mitigate the impact of the pandemic on employment, the Indian government implemented various measures, including the Atmanirbhar Bharat Abhiyan, a relief package for businesses and workers. Additionally, the government launched several job creation schemes, such as the Garib Kalyan Rojgar Abhiyaan and the Pradhan Mantri Garib Kalyan Yojana.

 

Previous Post Next Post