The Whack of COVID-19: 18.9 Million Salaried People Lost Their Jobs
The loss of around 5 million jobs in July comes after around 3.9 million jobs were gained in June, as per the recorded data
The deadliest virus forced a lockdown all over the world. Every part of the world faced an impact, but the job aspect faced a bump. 2.7 million people in the country were affected by the novel coronavirus pandemic which also struck hard on the economy of the country.
In July, nearly five million salaried people lost their jobs. A lot of people lost their jobs in the category 18.9 million despite the recovery in overall employment rate which is driven by the informal sector. The Centre for Monitoring Indian Economy said that the job losses among the salaried classes are a ballooning cause of worry.
The CMIE data showcased that in April 2020, 17.7 million salaried jobs whereas in May 0.1 million people also lost their jobs. While on the other hand 3.9 million people also gained jobs in June. But an additional loss of five million jobs was lost in July.
Adding onto the unhealthy recuperation and the worsening situation of the salaried jobs the CMIE said, “On a net basis, the plight of salaried employees has worsened since the lockdown began as by July, their losses had swelled to 18.9 million.”
As per the think-tank in India, only 21% of the employment caters the form of salaried employment which are pliable to the economic shocks. Salaried employment was almost 19 million shies of their normal in 2019-20. But the outcome accounted was 15% of all job losses in April.
CMIE admonished, “While salaried jobs are not lost easily, once lost they are also far more difficult to retrieve. Therefore, their ballooning numbers are a source of worry.” The roughly calculated job loss by CMIE was 121.5 billion in the first month of lockdown in April. In May, the loss capsulizes to 100.3 million which further narrowed down in June to 29.9 million, and for the month of July, it was11 million.
The lockdown of April impacted small traders, hawkers, and daily wage laborers to a large extent. The CMIE data exhibited, "Of the 121.5 million jobs lost in that month, 91.2 million were among these. This category of employment accounted for about 32 percent of the total employment but, it suffered 75 percent of the hit in April.”
30% of loss of employment was witnessed in April, and on the other hand, 3% were bereft of their source of livelihood in the month of July as mentioned by CMIE. A significant setback as been observed as 11 million job losses were recorded.
As the unlocking of the economy has begun from the month of June, a fare recovery has been noticed. CMIE also stated, "Of the 91.2 million such jobs lost in April, 14.4 million came back in May, 44.5 million in June and 25.5 million in July. Only 6.8 million remain to return.” Lastly, it also mentioned that "The situation has worsened for the relatively better jobs, i.e. salaried jobs. While jobs have recovered, this recovery has left out healthier, salaried jobs.”