According to the sources of Centre for Monitoring Indian Economy, the percentage of unemployment has increased due to the abrupt change of worldwide occurring for a pandemic disease called Corona virus. And with the rapid spreading of this virus all over the world, the Government of India declares to follow a nationwide lockdown which started from the 22nd of April 2020.
With the result of the extension of lockdown, 27 million people are losing their jobs among the youths with the age group of 20-30 years, which might lead to repercussions among the unemployed ones for a long time. The rate of unemployment fell from 27.1%to 24% until May 10. On the other hand, the labor participation rate increased from 36.2% to 37.6% as the government is opening up all the industries in a much-lurched manner, said by CMIE.
Adding to this further, 33 million men and women got unemployed by the end of April this year among which men have a big percentage of unemployment which is 86%. Losing jobs during a critical situation might create a massacre among the youths as they might be able to build healthy savings for later life.
The CMIE also said that in April 2020 their numbers were down to 20.9 million which previously was 34.2 million of these young men and women were working in 2019-20. which will badly lead to economic downfall all over the country.
Due to the reason for social protection and their measures (work from home) companies have started running in huge loss which forces them to cut down the manpower strength, which automatically now leads to rising unemployment nationwide among the youths and mid-aged persons as well. Another 14 million jobs were lost in the age-group 25-29 years which is proportionately high as the group highly accounted for 11.1% of total employment in 2019-20 but it accounted for 11.5% of the job losses, said by the CMIE sources.
The loss of job due to coronavirus especially among the youths might imply their savings. Adding to this CMIE said “While households may well conserve cash during these times, the loss of jobs among the young deprives households of the extra cash which is mostly saved for either buying a house or durables or for retirement,”