Covid or No Covid, Govt’s Job Record Abysmal

Context: There is a need to create meaningful employment creation to provide jobs to the working-age population to revive the economy hit by COVID-19 pandemic.

Impact of COVID on jobs and incomes

• Lack of job creation: Recorded drop of 8 million jobs over a time period from April 2019 to March 2019, while the working-age population would have gone up by about 10 million. - Centre for Monitoring Indian Economy (CMIE).
• Disguised unemployment: The number of people working in agriculture had risen to 33% of the total number of people with work in the month of July. 

• It indicates a sharp rise in disguised unemployment and not any real productive job opportunities.

• Decline in non-farm jobs: There were about 279 million people with work in non-farming activities in March. But non-farm jobs have declined by 20 million between March and July this year due to pandemic.
• Fewer salaried jobs: 

• In 2019-20, about 86 million salaried employees were in India. The number dropped to about 68.4 million in April. 

• Despite the overall recovery in July, the number of salaried employees dropped back to 67.2 million in July. 

• Large-scale reverse migration: Estimates suggest that around  8-10 million migrant workers have left our cities and towns and returned to their villages. 

• The total number of people available for work in urban India has dropped significantly.
• Many people who lost salaried jobs in April have switched to daily wage work.

• Falling incomes: Average incomes are likely to fall post-pandemic. This will contract demand for goods and services in the economy. 

• It results in downsizing, pay cuts, reducing sales, administration and marketing costs, and cutting back on investments.

Conclusion: Along with social welfare schemes, there is a need to create productive jobs and promote equitable and balanced economic growth in the country.