Longterm cost of lockdown

Context: Job loss among the young population during the present lockdown has serious long-term repercussions.

Immediate Impact of COVID

• 122 million jobs lost because of the lockdown with unemployment rate of 24% and LFPR only 37.6%.
• Open unemployment in India in April 2020 was 23.5 per cent.
• Loss of life due to Migrant crisis, hunger, children being stunted because of life-threatening or highly debilitating malnutrition
• Loss of dignity caused by the lockdown
• Disproportionate effect on young: Over 13 million losing their jobs in the lockdown were youngsters in the age group 20-24.

Long term Impact

• It will impact later life earnings and will play important role in perpetuation of poverty.
• Increase in debt delinquency of vulnerable populations.
• Job losses among the young population have implications on savings.