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Over 1.8 crore salaried persons lost their jobs since the pandemic began and forced businesses to shutdown in India between April and July end. Of them, nearly 50 lakh jobs were lost in the month of July alone, says Centre for Monitoring Indian Economy (CMIE) data.
Nearly 50 lakh salaried jobs were lost in India in July, according to latest data released by the CMIE. The development comes at a crucial time when economists predict India’s financial woes to continue throughout the year. The unemployment rate of 30-days stands at 8.2.
According to CMIE’s latest report, more than 1.8 crore salaried employees lost their jobs after the pandemic forced businesses and firms to shutdown in India since April. After the report serious doubts over the prospect of healthy economic recovery are being raised as job losses keeps ballooning.
IN all 21%of all employment in India is in the form of salaried employment, far lower than the number of those engaged in the informal sector. While employment in informal sector and rural areas have seen an uptick since April, the lack of improvement in salaried jobs paints a worrisome picture in terms of growth.
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Salaried jobs contribute more to the country’s GDP than employment in the informal sector, which is largely dependent on the formal economy. The bloodbath in salaried employment began in April when 17.7 million jobs were lost, following which 3.9 million additional jobs were gained in June.
However, five million jobs were again lost in July, and the plight of salaried employees has only worsened since the lockdown began, showed CMIE data.
Although rural employment numbers have gained momentum since the lockdown first began, its impact on growth will be less due to lack of demand in urban areas. Many reports show that people in urban households have cut their monthly expenses and are spending less.
The fresh job data released by CMIE further escalates doubts about India’s economic recovery as other key indicators like inflation, GDP, factory activity data and fiscal deficit continue to remain worrisome.
