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Despite no nationwide lockdown during the second wave of the coronavirus pandemic, many people became jobless. According to data published by the Centre for Monitoring Indian Economy (CMIE), over 15 million jobs were lost during May. People in the urban areas were the worst hit as urban joblessness rate rose to 18% in the week ending May 30, the highest in the past one year.
“Employment fell from 390.8 million in April 2021 to 375.5 million in May 2021. This translates into a loss of 15.3 million jobs, or a 3.9% fall in employment in the month,” Mahesh Vyas, MD and CEO of CMIE, wrote on its website.
Worth mentioning here is that urban unemployment rate has been on the rise since early April 2021. On April 1, the 30-day moving average urban unemployment rate was 7.2%. By May 1, it had reached 9.6% and then by May 23 it was 12.7%.
“May 2021 is also the fourth consecutive month of a fall in employment. The cumulative fall in employment since January 2021 is 25.3 million. Employment in January 2021 was 400.7 million. This has dropped to 375.5 million,” said Vyas.
He said April and May 2021 witnessed a particularly severe fall in employment. “They account for 22.7 million of the 25.3 million job losses in the past four months. This is the period of the severe second wave of Covid-19. During these two months, India witnessed lockdowns of varying degrees for different durations in different regions. It was a period of substantial disruption in economic activities which was bound to reflect in employment,” said Vyas.
He said the CMIE’s consumer pyramid household survey showed that the impact during these two months, particularly in May 2021 was severe on daily wage workers. The rural unemployment rate in the week ending May 30 was 9.6%, lower than the 13.5% in the week ending May 23.
Employment in rural India received substantial support from the central government’s MGNREGS. The scheme employed 341 million during April. This was the highest since July 2020.
It may be noted that double-digit unemployment rate is not normal for India. The only time the unemployment rate lurched into double-digits was in April and May 2020, when there was a nationwide lockdown. "There is no similarly draconian lockdown now although there are several local restrictions that restrain mobility in varying but distinctly milder degrees. The double-digit unemployment rate seen in recent times indicates that even these restrictions are taking a toll on the economy," said Vyas.
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“Employment fell from 390.8 million in April 2021 to 375.5 million in May 2021. This translates into a loss of 15.3 million jobs, or a 3.9% fall in employment in the month,” Mahesh Vyas, MD and CEO of CMIE, wrote on its website.
Worth mentioning here is that urban unemployment rate has been on the rise since early April 2021. On April 1, the 30-day moving average urban unemployment rate was 7.2%. By May 1, it had reached 9.6% and then by May 23 it was 12.7%.
“May 2021 is also the fourth consecutive month of a fall in employment. The cumulative fall in employment since January 2021 is 25.3 million. Employment in January 2021 was 400.7 million. This has dropped to 375.5 million,” said Vyas.
He said April and May 2021 witnessed a particularly severe fall in employment. “They account for 22.7 million of the 25.3 million job losses in the past four months. This is the period of the severe second wave of Covid-19. During these two months, India witnessed lockdowns of varying degrees for different durations in different regions. It was a period of substantial disruption in economic activities which was bound to reflect in employment,” said Vyas.
He said the CMIE’s consumer pyramid household survey showed that the impact during these two months, particularly in May 2021 was severe on daily wage workers. The rural unemployment rate in the week ending May 30 was 9.6%, lower than the 13.5% in the week ending May 23.
Employment in rural India received substantial support from the central government’s MGNREGS. The scheme employed 341 million during April. This was the highest since July 2020.
It may be noted that double-digit unemployment rate is not normal for India. The only time the unemployment rate lurched into double-digits was in April and May 2020, when there was a nationwide lockdown. "There is no similarly draconian lockdown now although there are several local restrictions that restrain mobility in varying but distinctly milder degrees. The double-digit unemployment rate seen in recent times indicates that even these restrictions are taking a toll on the economy," said Vyas.
Over 15 million lost jobs in May, urban jobless rate hits one-year high of 18%
Worth mentioning here is that urban unemployment rate has been on the rise since early April 2021. On April 1, the 30-day moving average urban unemployment rate was 7.2%.
