India is at the brink of a job crisis triggered by the Corona outbreak. This job crisis worsened due to the subsequent lockdown. Centre for Monitoring Indian Economy recently published a report on this. According to the report, one in every four people has lost their job. The data reported are for the month of March and April only.
Mahesh Vyas (MD and CEO, CMIE) said ” The estimated loss of employment between March and April 2020 is 114 million. Given that the total count of employed is around 400 million, the loss is 114 million implies that one in every four employed persons lost their jobs.” CMIE data shows that the unemployment rate soared to 27.11% by May 3. It was 6.74% on March 15. According to CMIE, the unemployment rate is the highest in urban areas. The majority of the corona hotspots are located in urban areas too. The unemployment rate in urban areas is 29.22% report suggests. The report also suggests in the rural area the unemployment rate is 26.16%. CMIE Data, till April end, shows that the unemployment rate in Puducherry is at 75.8%- the highest in the country. Tamil Nadu has the second-highest unemployment rate ar 49.8%.
The unemployment rates in Bihar and Jharkhand are over 45%. Maharashtra and Uttar Pradesh are below 22%. Hilly states have the lowest unemployment rate in the country. The unemployment rate in Himachal Pradesh is 2.2% while it is 2.3% in Sikkim. This report shows that the coming months for India is going to be very tough. The majority of Urban employed youth might lose their job in the coming months too. This is an alarming situation for GOI. Although we would get out of the Corona in a few months the economic impact is going to be vast on the Indian economy.
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