India's economic situation was bad even before the Corona outbreak. Growth has slowed for several consecutive quarters. Naturally, the corona outbreak would worsen the situation, affecting employment সবাই everyone was worried.
According to CMIE, India's economic research firm, India's unemployment rate for the week ended May 3 was 26.10 percent. In the previous week it was 21.05 percent. This is the highest since the lockdown started. The unemployment rate in April was 23.52 percent. After February, this figure is almost three times that of March.
According to CMIE, in April, 93 million day laborers and small business workers, another 182 million workers in various enterprises and 16 million salaried workers lost their jobs in India.
By 1933, during the Great Depression, the unemployment rate in the United States was about 25 percent. That means one out of every four was unemployed there. According to CMIE, this picture of India is similar to that of the Great Depression.
In a country where about 90 percent of workers work in the informal sector, it is normal for the number of people to lose their jobs if financial activities are virtually stopped for a month and a half. The way the migrant workers lost their jobs in the lockdown and went on the road, it was expected that the situation was going to deteriorate. With that, the contract workers have lost their jobs. However, economic analysts believe that there are several reasons for the increase in fears.
First, in the week ended April 28, the unemployment rate fell to 21.05 percent from the previous week (28.19 percent). After April 20, the central government of India relaxed its ban on step-by-step financial activities in the 'corona-free' region. Experts then said that (March 22-April 19) almost all the factories were closed and those who were saying there were no jobs, many were waiting to get their jobs back in the hope of reopening. So many of them do not think of themselves as unemployed. But if they don't get that job back, the statistics could get worse again. As a result, the question arises, but most of the work did not get back, or the factory did not open? How much work was given or harvested?
Second, in the week ended March 22, 42.8 percent of the workers were working or looking for work. In the week of April 28 it is 35.4%. Experts feared that unemployment would fall as many people removed themselves from looking for work in the lockdown. In the week of May 3, the unemployment graph has gone up due to the increase in that number (38.2% in terms of staff and job search).
Third, before the lockdown, the unemployment rate in India was 7.41 percent. In a month and a half, it has reached 26.11 percent. Many fear that the main shock of losing a job will be felt if the factory is opened. Then there may be cuts in the informal sector as well as in the institutional sector.
According to the CMIE, among the major states, Tamil Nadu, Jharkhand and Bihar have the highest unemployment rates at 49.6 per cent, 46.1 per cent and 47.6 per cent respectively. The lowest are in Punjab, Chhattisgarh and Telangana at 2.9, 3.4 and 6.2 percent respectively.