HomeJOBSSecond wave left 1 crore Indians jobless; 97% households' incomes dipped: Report

Second wave left 1 crore Indians jobless; 97% households’ incomes dipped: Report

Explaining that the main reason for job losses “especially the second wave” of infection with Covid-19, Vyas said, “As the economy recovers, part of the problem will be solved but not completely.”

More than 10 million Indians have lost their jobs as a result of the second Covid-19 wave, and about 97 percent of household income has declined since the outbreak began last year, Center for Monitoring Indian Economy (CMIE) chief executive Mahesh Vyas said on Monday.

The unemployment rate estimated by the think tank is expected to reach 12 percent by the end of May as compared to eight percent in April, Vyas told PTI, adding that this means that about 10 million or one crore of Indians have lost their jobs this season.

Explaining that the main reason for job losses “especially the second wave” of infection with Covid-19, Vyas said, “As the economy recovers, part of the problem will be solved but not completely.”

He also explained that people who lose their jobs find it difficult to find work, adding that although informal sector jobs are returning quickly, the formal sector and high-level job opportunities take a year to return.

The unemployment rate affected a high of 23.5 percent in May 2020 due to a national slowdown. Many experts prefer that the second wave of infection has arrived and that provinces will begin to gradually reduce the boundaries that affect economic activities in a balanced way.

Second wave left 1 crore Indians jobless; 97% households' incomes dipped: Report
Second wave left 1 crore Indians jobless; 97% households’ incomes dipped: Report

Vyas went on to say that the 3-4% unemployment rate should be considered “normal” in the Indian economy, adding that the unemployment rate would have to decline long before the situation improved.

He said CMIE had completed a nationwide survey of 1.75 lakh families in April raising a worrying trend in revenue over the past year – proving two waves of the epidemic.

Only 3 percent of voters said they saw an increase in revenue, and 55 percent said their income had dropped, he said.

Some 42 percent said that their income is still the same as last year.

He said that If they fix the inflation, they find that 97 percent of households in the country have seen declining incomes during the recession.

Employee participation, or the percentage of working people in the market, has dropped to 40 percent from now on from pre-epidemic levels to 42.5 percent, he added.

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