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21 Million People Lost Jobs In April-August: Centre For Monitoring Indian Economy Data
India, 9 Sep 2020 11:30 AM GMT | Updated 9 Sep 2020 11:34 AM GMT
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"The deficit of 21 million jobs is the biggest among all types of employment. About 4.8 million salaried jobs were lost in July and then in August, another 3.3 million jobs were gone," the CMIE report said.
The number of salaried jobs lost due to COVID-19 pandemic from April to August stood at 21 million from with more than 3.3 million jobs lost in August and about 4.8 million in July, according to the data released by the Centre for Monitoring Indian Economy (CMIE). Since April, the job losses were recorded at 18.9 million which increased rapidly by the month of August.
An earlier report released by ICMR revealed that soon after 3.9 million jobs were added in June, five million jobs were lost in July. As per the recent data, salaried jobs receded from 86 million to 65 million in the year 2019-2020. "The deficit of 21 million jobs is the biggest among all types of employment. About 4.8 million salaried jobs were lost in July and then in August, another 3.3 million jobs were gone," the CMIE report said.
The CEO Mahesh Vyas said, "While salaried jobs are not lost easily, once lost, they are far more difficult to retrieve. Therefore, their ballooning numbers are a source of worry."
India's rate of unemployment surged from 7.40 per cent in July to 8.35 per cent in August, as per the CMIE data released monthly. The data also showed that the unemployment rate in the urban areas increased from 9.37 per cent in July to 9.83 per cent in August while in rural areas, it surged to 7.65 per cent in August from 6.51 per cent in the previous month.
"The unemployment rate, which has been falling so far after April, increased from 7.4 per cent in July to 8.4 per cent in August. This is a significant jump. As a result, the employment rate fell from 37.6 per cent to 37.5 per cent in the same period," the report added.
The CMIE also said that during this ongoing economic downturn, salaried jobs and individuals are the most affected and there is no hope of these jobs to grow and work in conjunction with the country's GDP growth.
However, salaried jobs are not only confined to those offered by the organizations but also includes informal salaried jobs for house helps, cooks, drivers, gardeners, guards which form around 21-22 per cent of the total employment in India.
According to CMEI report, most of the people opted for farming and thereby employment in the farming sector increased by 14 million with around 111 million employees recorded during the year 2019-2021. On the other hand, the jobs of entrepreneurs suffered a downfall during the lockdown but inched higher by seven million from 78 million.
Employment as daily wage workers were affected badly as well with 121 million jobs lost during April. But it has improved in the month of August with a deficit of fewer than 11 million jobs from 129 million jobs in 2019-2020.
Since the announcement of the countrywide lockdown, the economy has faced a severe downfall with several organizations and companies implementing job cuts and reduction in salaries. However, the government is trying to revive the economy and various experts have urged for governmental support in order to survive the job losses.
Also Read: Indian Economy To Contract 10.5% In 2020-21: Fitch Ratings
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