The second wave of COVID-19 has now inflicted severe harm in the country; more than 10 million Indians have lost their jobs and the household incomes of 97% of the people have declined.
These numbers have been confirmed by the Centre for Monitoring Indian Economy (CMIE) chief executive Mahesh Vyas.
Unemployment Rate Up To 12%; More Than 10 Million Indians Lost Their Jobs
The unemployment rate is expected to be 12 per cent by the end of May, and the rate was 8 per cent in April, as per Vyas. This clearly shows that about 1 million or one space crore Indians have lost their jobs in this period.
He has said that the primary reason for the job losses is “mainly the second wave” of COVID-19 virus. He states, “As the economy opens up, part of the problem will be solved but not entirely.”
He has also stated that people who lose their jobs do not find it easy to be employed again. The informal sector jobs do revive quicker than the formal sector. As per Vyas, better quality job opportunities require a year to come back.
The unemployment rate had breached a record high of 23.5 per cent in May 2020 due to the national lockdown. Multiple experts are of the opinion that the second wave of the COVID-19 virus has already reached its peak and states will also start relaxing the restrictions.
As per Vyas, the unemployment rate of 3-4 per cent can be deemed normal for the economy of India which might be a hint that the unemployment number will be going down for a long time before the situation is better.
Household Incomes of 55% People Declined
The CMIE has also completed a survey of 1.75 lakh households across the country in April which sheds light on the income generation situation of these households in the last year, especially because of the two waves of COVID-10 pandemic.
In this survey, it was observed that only 3 percent of the respondents have had an increase in their incomes whereas 55 per cent of the households have stated that their incomes have declined.
About 42% of the respondents said that their incomes remained the same.
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