A recent Centre for Monitoring Indian Economy (CMIE) report shows a drop in salaried jobs from 85 million (in the pre-Covid time) to 73-74 million (after Covid).
According to the study: “India had 403.5 million jobs before being hit by the COVID-19 pandemic. In April 2020, about 126 million jobs were lost of which about 90 million were those of daily wagers. The figure recovered and reached 400 million jobs in January 2021 or December 2020. However, after the second wave, India has 390 million jobs.”
Mahesh Vyas, Chief Executive Officer of CMIE has highlighted how not everyone has got their jobs back since the drop; many have started working again but in jobs that have lower employment security or lower salary. Over 97% of the Indian population has become poorer according to him; this is, compared to what incomes were a year ago.
Unemployment levels have increased to double digits, at 14.73 percent as of May 23, according to CMIE, with above 17 percent unemployment in urban India and around 14 percent in rural India. Vyas mentions how the report shows an increase in unemployment rates and a staling in labour participation.
Last year widespread protests were held, with “national unemployment day” even being held on PM Modi’s birthday to show the scale of disappointment in the Govt. due to lack of security provided to workers especially in the unorganised sector where employment is already precarious.
Renowned Economist Amit Bhaduri explains the neoliberal governance at the root of such a problem. He says:
“No matter the lockdown or pandemic, the government changes labor and environmental laws to help the industry. It gave them a tax break in terms of foregone government revenue which is almost double the money it spends today on MGNREGA…
The government is not interested in the economy. Instead, the government is interested in protecting and augmenting the fortune of its selected group of industrialist friends who in turn would help it in times of election.”
