Last Updated on Apr 13, 2020 by Aradhana Gotur

The deadly coronavirus has disrupted things at the grassroots level. Social distancing was well and good, but an ugly distance between citizens and their jobs has created much havoc in the households. Yes, we are talking about unemployment, a by-product of the 21-day nationwide lockdown. But being a double-edged sword, the lockdown is crucial to contain the spread of the virus.

Unemployment rate heading north

However, it has resulted in an unemployment rate of 23.4% as per the Centre for Monitoring Indian Economy (CMIE), a business information company that tracks unemployment data. While the figure was much more tolerable at 8.4% till 22nd Mar, unemployment rose to 23.4%  by April 5. This is not all, experts believe that the actual rate of unemployment would be steeper as some employees are only sent home for now and maybe fired when the lockdown is lifted. This means that the figure may climb higher and show itself eventually.

Indian unemployment rate: the worst in the world

Says The Print, that the job-destruction caused by the virus in India might be the worst in the world’s economic history. Let’s talk numbers reported by CME. Out of the total population of ~137 crore, ~103 crore are above 15 years, which is considered as the working-age. In Feb 2020, before coronavirus triggered a lockdown, ~40.4 crore Indians had jobs. Last week, this figure fell to 28.5 crore, which means ~11.9 crore Indians are unemployed.


For more context: ~1 crore Americans are unemployed in the US as against ~11.9 crore back home during the same period. It all goes to say that households with an only bread-winner are most likely to be facing livelihood crisis.

Government’s efforts and the risks of getting poorer

Thankfully, the Ministry of Labour and Employment is looking to offer unemployment insurance called ‘Atal Beema Vyakti Kalyan Yojana’ to jobless workers if impacted by the coronavirus. However, they should have subscribed to ESIC for at least 2 years to get this benefit.

The danger of unemployment looms nonetheless. The UN has given a hair-raising alert that ~400 million workers of the informal economy in the country are at risk of falling into poverty due to the cascading effects of the coronavirus. So, what happens to them?

Aradhana Gotur
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.