India’s second wave of pandemic virus makes 7 million people jobless

Share this article

India’s unemployment rate rose to nearly 8% in April, a four-month high according to data from the Center for Monitoring Indian Economy Pvt. (CMIE), a private research firm. The possibility of India’s economy recovering is unlikely due to the current catastrophic effect of a second wave of the Covid 19 pandemic. State administrations are extending curfews and lockdowns to try to curb a record surge in virus cases.

“There is a fall in the jobs available. This could be due to the lockdowns,” CMIE Managing Director Mahesh Vyas said, adding “Since the virus is still quite intense and the medical health services are stretched, it’s likely that the situation will remain tense in May as well.”

On Saturday India became the first country to register more than 400,000 daily cases. Then daily Covid-19 deaths in India hit a record 3,689 on Sunday. However the number of new cases slowed slightly on Monday.

Prime Minister Narendra Modi, announced a strict lockdown in March 2020 that resulted in millions of lost jobs and a record contraction in economic output. He is now is urging states to only use such strict lockdown measures as a last resort. Local administrations have been forced to extend curbs as the nation’s unprepared health infrastructure suffers under the surge in virus cases which in turn jeopardises economic recovery.

The weak employment outlook is a risk for India’s chances of reaching double digit economic growth this year. Many economists already have lowered their projections, while several are warning of possible reductions if localized lockdowns are extended further.

Barclays Bank Plc on Monday lowered its forecast for Indias economic growth by one percentage point to 10%, as “there is growing uncertainty around the number of cases and fatalities,” economist Rahul Bajoria wrote in a research note. “Slowing vaccinations are also hurting India’s recovery prospects.”

There is also a backlash against the governments handling of the world’s worst Covid-19 outbreak. President Modi’s party lost a key state in the recent election. Social media is filled with criticism of the handling of the second outbreak highlighting the governments failings. This is leading to foreign envoys offering help with medical supplies as the pandemic continues to ravage the country especially the capital Delhi.

A separate survey by IHS Markit showed the manufacturing sector was still suffering job losses April but the rate of contraction was the weakest in the proceeding 13-month run of the shrinking economy. The CMIE data, which is closely tracked by economists in the absence of real-time employment data from the government, showed joblessness is more acute in urban areas as unemployment forces labourers to return to their villages

The labor-force participation rate, which includes the number of people with jobs and those seeking work, declined to just below 40% in April.

“It’s a double whammy for the economy,” CMIE Managing Director Vyas said. “Some people get disappointed and leave the labour market. The problem is the inability of the Indian economy to generate sufficient jobs for people who want them, so incomes are falling.”

Source: Bloomberg

Similar Articles

Don't Miss

Covid pandemic hits women’s jobs hardest in UK

Working women have been found to experience far higher levels of redundancies during the Covid pandemic than in any previous recessions, according to the Trades Union Congress (TUC). Female redundancies in the UK hit 178,000 between September and November 2020, according to the TUC which is 76% higher than the peak reached during the 2007 financial crisis when female redundancy levels hit 100,000.

Jobs available in Croydon

The main employment sectors in Central Croydon are retail and enterprise. Also the area 'Purley Way' has many retail parks, outlet and malls making it a destination for shoppers looking for stores that carry the full range of products. Here there are many opportunities for sales assistants, consultants and store managers. IKEA Croydon brought many non-skilled jobs to Croydon and is the fifth biggest employer in Croydon.

Morris Leslie plant hire company rises from losing millions to investing £70m

Perthshire plant hire giant Morris Leslie was hit hard by the Covid 19 pandemic, however the company was struggling before that because of Brexit. Six months before Covid 19 shut down building sites and locked down the UK the company Morris Leslie has already experienced tough times. Uncertainty because of Brexit had already caused building projects to be shut down or paused causing a much lower demand for plant hires and sales. This slowdown had caused an oversupply of construction equipment meaning more competition and so reduced prices. Then Covid 19 hit and the group’s vehicle auctions and Sunday car boot market were shut down.