By Arré Bench Aug. 19, 2020
According to a recent report from the CMIE, five million salaried employees have lost out on jobs in July alone, a staggering figure that’s become a cause for concern. The figure reflects a trend that started rising with the lockdown back in April, when an estimated 17.7 million salaried jobs were lost to the pandemic.
The coronavirus pandemic and the subsequent lockdown has led to large-scale suffering across the world. Apart from posing a threat to the most medically vulnerable sections, Covid-19 has also left large numbers of people with no hope for employment.
Now, according to a recent report from the Centre of Monitoring Indian Economy, as many as five million salaried employees are said to have lost out on jobs in July alone, a staggering figure that’s become a cause for concern.
The figure reflects a trend that started rising with the lockdown back in April. In that month, an estimated 17.7 million salaried jobs were lost to the pandemic. This figure didn’t change much in May, with another 0.1 million jobs lost.
While there was some recovery in June, with 3.9 million jobs gained, the loss of another 5 million salaried jobs in July has now worsened the situation. The implications that this has on an individual’s mental health, savings and expenses, had journalist Faye D’souza calling this report the biggest headline of the day.
5 million salaried jobs have been lost in the month of July : CMIE. A total of 18.9 mill salaried jobs lost since April.
The impact on mental health, house hold savings and spending will be massive.
Why isn’t this the biggest headline today?
— Faye DSouza (@fayedsouza) August 19, 2020
“On a net basis, the plight of salaried employees has worsened since the lockdown began. In April, they lost 17.7 million jobs. But by July, their losses had swelled to 18.9 million,” the CMIE study said. “While salaried jobs are not lost easily, once lost they are also far more difficult to retrieve,” it added.
However, only 21% of all employment in India is in the form of a salaried employment, which is more resilient to economic shocks, the study said. The worst affected continue to be small traders, hawkers and daily wage labourers.
CMIE: 17.7 million salaried jobs lost in April 2020.
0.1 million jobs lost in May.
5 million jobs lost in July
Small traders, hawkers&daily wage labourers the worst hit by the lockdown in April with 6.8 million yet to return back to their informal jobs. https://t.co/FzeWI7rJuN
— Priyanka Chaturvedi (@priyankac19) August 19, 2020
“Of the 121.5 million jobs lost in April, 91.2 million were among these. This category of employment accounted for about 32 per cent of the total employment but, it suffered 75 per cent of the hit in April,” the study says, referring to informal jobs.
While the figure for informal jobs has since improved, the study adds that the recovery has “left out healthier salaried jobs”.
Almost 2 crore (1.89 million) salaried individuals lost their jobs in last three months. That’s 1 out of 5 (22%) of India’s total salaried workforce. https://t.co/0vRfWfSUzq
— Aakar Patel (@Aakar__Patel) August 18, 2020
With the coronavirus pandemic showing no signs of slowing down, nearly six months after it was first discovered in the country, one can only hope the situation improves soon.