The COVID-19 pandemic has pushed several people into unemployment as the economic activities come to a halt amid the nationwide lockdown. As per data published by the Centre for Monitoring Indian Economy (CMIE), about 2.7 crore people between the age of 20-30 years lost their jobs in April.
"This has serious long-term repercussions. It is during this age that young India builds its career in the hope of a bright future," The Times of India quoted Mahesh Vyas, MD and CEO of economic research house CMIE as saying.
However, the overall unemployment rate slowed down to 24% from an earlier 27.1% in the week ended May 10.
According to the CMIE data, 33 million men and women lost their jobs in their 30s in April and 86% of the job losses were reported among men. The report also mentioned that the job losses are disproportionately high among the younger age groups.
"Collectively, 44% of those employed in 2019-20 were under 40 years of age. However, 52% of the job losses were among those who were under 40 years of age. In contrast, while those of 40 years or more accounted for 56% of the total employed in 2019-20, they account for 48% of the job losses," Vyas said.
Airlines, manufacturing, hotels, restaurants, media & entertainment, and services have been majorly affected by the outbreak of COVID-19 and the lockdown imposed to contain its spread.
"Job losses among the young population would have implications on savings. While households may well conserve cash during these times, the loss of jobs among the young deprives households of the extra cash that is mostly saved for either buying a house or durables or for retirement. This loss of savings will have long-term implications," Vyas added.