The labor market recorded a rapid recovery after the severe blockade in April 2020, but the recovery was partial and exhausted, Mahesh Vyas, MD and CEO of the Indian Economic Monitoring Center (CMIE), said in a recent article. writing. Even if the unemployment rate recovers (7.6% in 2019-20, average 7.6% from July to August 2021 and down from 23.5% in April 2020), Vyas is up 7-8% It may have settled down at a rate. OK.
“The recovery seems to have run out as the gradual improvement has declined significantly. In the last 12 months since September 2020, the net cumulative increase in employment was only 44,483, which is more than 400 million jobs. Based on, only 0.4 million people. There were some big increases from one month to the next, but these will be lost in the months that follow, “Vyas wrote. increase.
He said the partial nature of the recovery is found in the other two key proportions of the labor market, the labor force participation rate (LPR) and the employment rate. “The 40.5% LPR in August 2021 was 2.1 points lower than in 2019-20. The employment rate was 2.2 points lower.
“These two ratios are more important than the unemployment rate. They dropped dramatically with the blockade and recovered quickly, but the recovery remained partial 17 months after the first blockade. . “
Vyas said the recovery has also discriminated against office workers and entrepreneurs. Unemployment was concentrated on office workers. Employment in August 2021 was 5.7 million less than in 2019-20. This includes the unemployment of 8.8 million office workers and the unemployment of 2 million entrepreneurs. These losses were partially offset by an increase in agricultural employment of 4.7 million and an increase in day labor and small trader employment of 700,000.
“Labor market recovery is … heavily biased in favor of local markets. Of the 5.7 million jobs lost between 2019-20 and August 2021, 3.7 million were lost in urban areas of India. The urban areas of India account for 32% of total employment, but suffered 65% of unemployment after the Covid-19 pandemic, “he said.
Mahesh Vyas, MD and CEO of CMIE, said the labor market is recovering quickly, but partially and exhausted.
https://www.financialexpress.com/economy/labour-market-recovery-swift-but-partial-and-exhausting-says-mahesh-vyas-md-ceo-of-cmie/2337384/ Mahesh Vyas, MD and CEO of CMIE, said the labor market is recovering quickly, but partially and exhausted.