Indian Labour Market Now in Worst Condition since Apr-May 2020: CMIE
As employment rate continues to worsen amid the second wave of COVID-19, the Centre for Monitoring Indian Economy (CMIE) has said that the Indian labour market is in its worst condition since April-May last year, when the whole country was under lock-down.
Data published by CMIE showed that the unemployment rate, which reached 11.9% in May 2021, continued to rise during early June.
The 30-day moving average unemployment rate as of 6 June 2021, was 13%.
Further, the labour participation rate, that had fallen to 40 per cent, has fallen further to 39.7% and the most important labour market indicator, the employment rate, which had fallen to 35.3% in May, dropped to 34.6% by 6 June 2021.
"The Indian labour market is in its worst condition since the nation-wide lockdown months of April and May 2020," CMIE's CEO Mahesh Vyas said.
He noted that the past four weeks have seen a particularly sharp deterioration in labour market conditions.
Mr Vyas, however, said that a quick recovery of the informal jobs that were lost in the unorganised sectors is expected because of the local lock-downs. But there is also a steady fall in the employment independent of the lock-downs, he added.
The total non-farm jobs lost since January 2021 works out to 36.8 million. Of this, daily wage labourers account for 23.1 million. Salaried employees account for 8.5 million and the rest are entrepreneurs, as per CMIE.
It would take a strong recovery of the India economy to recover the remaining jobs or revert to the employment levels of 2019-20, he said.
"The unlocking process can be expected to repair about two-thirds of the job losses associated with the lockdown of May 2021. That would be 17 million out of the 25 million non-farm jobs lost during the month," Mr Vyas added.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Covid, high tax burden to slowdown consumption recovery: Ind-Ra
IANS 09 June 2021
Covid triggered economic turbulence along with no relief on the tax front is expected to delay the consumption recovery, said India Ratings and Research (Ind-Ra).
Accordingly, the ratings agency said that with no relief in...
I-T e-filing Portal: FM Sitharaman Asks Infosys and Nandan Nilekani Not To Let Down Taxpayers
Moneylife Digital Team 08 June 2021
The new e-filing website of the income tax (I-T) department with a variety of new additional features was finally launched Monday evening for taxpayers. However, many users complained on Twitter about glitches on the new portal for...
Is India's Credit Growth Hamstrung by De-leveraging?
Moneylife Digital Team 08 June 2021
FY20-21 is an outlier in India's financial system with the onset of pandemic. One direct corollary of pandemic in FY20-21 was a distinct slowdown in bank credit growth that has also continued into FY21-22. Such low credit growth was...
CRISIL Cuts India's Base-case GDP Growth Forecast by 150 basis points to 9.5%
Moneylife Digital Team 07 June 2021
The second wave of coronavirus (COVID-19) has thrown cold water over the Indian economy that was beginning to warm up after the most severe contraction since Independence. The rash of afflictions that followed forced states to lock...
Free Helpline
Legal Credit