CMIE Report Reveals the Freakish Unemployment Crisis in India

A major report from the Centre for Monitoring Indian Economy(CMIE) stated that by the end of March 2021, the salaried jobs in India declined to a sharp extent.

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CMIE Report Reveals the Freakish Unemployment Crisis in India the policy times

Covid-19 has caused huge economic damage. It was believed that the salaried employees were the safest in terms of security of employment and earning during the lockdown, but the fact is they suffered the biggest loss of employment.

Failure of Govt’s Policies- Root Cause of Unemployment Problem

The economic policies of the Government which was a total failure have caused large-scale devastation in India. The lives of the agricultural workers, industrial workers, employees in the services sector, informal workers, etc., are under huge stress due to lack of jobs. The situation has worsened as the existing jobs are also being snatched away. The initiatives of the Union Government for the creation and retention of secure jobs failed, pushing the unemployment rate at its highest level.

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‘Salaried Job Loss’- A Debilitating Impact on Economy

Salaried jobs have suffered the biggest hit in the first wave of Covid-19. In 2019-20, 58% salaried jobs were in urban India and 42% in rural India, and the overall rate declined by the end of March 2021. In the second wave of Covid-19, the salaried job loss is heavy in both urban and rural India. The CMIE report stated that most of the salaried employees who have lost jobs in the first wave of Covid-19 have migrated to farming. The salaried job loss has led the way to a crippling economy.

TPT Policy Advocacy & Recommendations

  • To deal with the surge of infection, lockdowns and curfews are already in place in several parts of the country. This has led to long-term unemployment which is skyrocketing. It is high time that the government needs to drastically change its policies, invest in job creation and give farmers better prices. This may break the vicious cycle, kick start the economic activity by raising demand and this, in turn, will push up production and hence employment.
  • The proposal of the Government focusing on rural infrastructure needs to be implemented with all seriousness. Such proposals were announced in the past also, but they failed to see the light of the day. Due to job loss in cities, many have migrated to rural areas which have increased the burden on the agriculture sector. If the intention of the government gets translated into action, then it can reduce the burden to some extent.
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A major report from the Centre for Monitoring Indian Economy(CMIE) stated that by the end of March 2021, the salaried jobs in India declined to a sharp extent.
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THE POLICY TIMES
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