According to the new CIME data,
India's unemployment figures are four times that of the US.
India's unemployment rate is now
at a record high of 27.1 percent, according to the Centre for Monitoring the
Indian Economy (CMIE).
The new data shows India's
unemployment figures are four times that of the US.
The country has been in lockdown
since 25 March to curb Covid-19 infections, causing mass layoffs and heavy job
losses.
Unemployment hit 23.5 percent in
April, a sharp spike from 8.7 percent in March. This is attributed to the lockdown,
which brought most economic activity - except essential services such as
hospitals, pharmacies and food supplies - to a standstill.
Large companies across various
sectors - media, aviation, retail, hospitality, automobiles - have announced
massive layoffs in recent weeks. And experts predict that many small and medium
businesses are likely to shut shop altogether.
A closer look at CMIE’s data shows the
devastating effect the lockdown has had on India's organized economy.
Of the 122 million who have lost
their jobs, 91.3 MN were small traders and laborers. But a fairly significant
number of salaried workers - 17.8 million - and self-employed people - 18.2
million - have also lost work.
As of the end of April,
Puducherry in South India had the highest unemployment at 75.8 percent,
followed by neighboring Tamil Nadu 49.8 percent, Jharkhand 47.1 percent and
Bihar 46.6 percent.
Maharashtra’s unemployment rate
was pegged at 20.9 percent by the CMIE, while the same for Haryana stood at
43.2 percent, Uttar Pradesh at 21.5 percent and Karnataka at 29.8 percent.
Hilly States had the lowest
incidence of unemployment as of April, the think tank said, pointing out that
the rate in Himachal Pradesh stood at 2.2 percent, Sikkim at 2.3% and
Uttarakhand at 6.5 percent.
The lockdown is slated to end on
17 May but some states have extended it further, with no clear indication as to
when the country as a whole might emerge from the lockdown.
Experts are also worried because
India had entered the lockdown with already high unemployment levels. At 8.7
percent, the rate was already at a 43-month high, up from just 3.4 percent in
July 2017, according to CMIE.
Source: People Matters 07 May,
2020
