COVID19- The deadly and highly contagious virus has taken the world by storm. Originated at Wuhan, China, the virus has spread its wings all over the world. It has impacted more than 1.4 million people globally and the number still keeps on rising. In India, the deadly virus, followed by nation lockdown has put the country on halt. With the increase in COVID-19 patients all over the nation, it has become important to keep extending the lockdown. However, this huge step is affecting the Indian economy and so does the unemployment rates of India.
As per the CMIE report, India’s urban unemployment rate increased by 30.9% even as the overall rate rises to 23.4%, due to the COVID-19’s impact on the economy.
According to Pronab Sen, a former chief statistician of India, around 50 million people lost the jobs in the initial two weeks of the lockdown.
“Since some may have just been sent home, for now, the actual scope of unemployment may be even higher and may show up a little later,” he added.
At the moment, India does not carry any reliable and high-frequency data on jobs. In the past, the CMIE’s jobs data has been the center of a political slugfest.
This job loss due to the pandemic has gripped many other countries as 10 million US workers have filed unemployment claims in recent days.
According to the experts of the industry, the unemployment rates will remain high even after the end of the lockdown period.
Once the lockdown ends, the government has to step in and help the economy bounce back. People need income to live a stable life.”Economic professor, JNU.