COVID-19 Pandemic has left the Indian economy in sheer despair! People are suffering many lay-offs and the unemployment rate in India is reaching its peak.
The impact of corona outbreak is not just restricted to physical damages. It is ruthlessly affecting the minds of people as well as the economy of the country. Companies and jobs are shut off and people are sitting idle at homes. State borders are sealed and apart from the transportation of basic groceries, everything else is at halt! India has recorded a substantial rise of 23.7% in its unemployment rate.
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Current scenario of Unemployment In India
People from corporate offices, hotel industry, tours, and travel businesses and even small laborers are not spared by the horror of this pandemic. Businesses and industries suffering due to corona are unable to understand the ways to commence operations. Lack of manpower, funds, and materials have bought manufacturing sectors to a standstill.
Indian people are in a constant fight in this lockdown to overcome COVID-19 effects. But Indian people are feeling helpless in this devastating scenario. Here is a broader scenario to understand the reasons for the rising unemployment rate in India.
Salaried professionals During Covid-19 Crisis
Lockdown has been continued for almost 2 months and people are trying to work from home. But the impact of home-based work is not producing satisfactory results. There are certain industries like IT, Banking, and health care that can perform some work. But professionals from mainstream sales or real estate are facing real-time distress.
Salaries are reduced by 30 to 50% by many organizations and all bonuses and incentives available annually have vanished. No big relief in bank EMIs has left a middle-class man in a fuss!
Business and Industries suffering due to Covid-19
Business owners are receiving hardly or no income as everything is locked up. Especially small start-ups, shop keepers and service providers are suffering due to lockdown. Labors working there have somehow managed to reach hometown. Does this have an added problem of how to start work back without adequate man force? Industrial units are shut from a long time increasing the unemployment rate to another level.
Migrant workers Lossing their Jobs To Reach Their Hometown
News headlines are overflowing with the scarcities and helplessness faced by the migrant workers. People are urged to dislocate from metro cities to their hometowns. They are walking miles and even ending up life’s in a wish to reach their villages. A huge amount of relief funds and goods released by the government are falling insufficient to even meet the basic needs of these workers.
Financial Problem For Indian Government Due To Covid-19
COVID-19 pandemic has devastated the economy of the country. From top-notch business owners to a daily wage worker, everyone is shattered with its impact! The government ultimately has to bear this burden. The fiscal deficit rate of India is reaching high and the Government needs to introduce additional relief packages.
Subsidies and allowances are further offered to the needy ones as they are the ones who aren’t even able to manage basic requirements. With liquor shops, petrol pumps, and other tax-generating businesses shut up, revenue generation in running in negative. This itself states the situation of the country and can be a major reason for unemployment in the coming months.
Surging rising in revenue deficits and increasing unemployment rates can display some horrifying results in the future. People are struggling with existing funds and have no clue to handle its after-effects.
The impact of corona is not only draining the country in monetary terms. It is also taking away the happiness of people leaving them in despair. Mental illness, anxiety, depression, and many other psychological problems are the next set of hurdles India needs to deal with!
What Statistics Say About Unemployment In India?
India’s backbone is wrenched by the recent pandemic and the country is unable to understand the techniques to deal with turmoil situation. The country’s formal as well as informal economy is hampered. Around 27 million Indian youth between the age group of 20- 3o years have lost jobs in April. Repercussions of this pandemic are more severe than anyone can imagine.
It is perplexing to know that every 4 out of 5 people in India are currently employed. This figure is sufficient to understand the future scenario of employment in India. 400 million Migrant workers comprise a large part of the informal working sector in India. Their poverty levels are about to increase and this is a big danger that the government is about to face.
State border sealed
Another very big reason for the sheer rise in the unemployment rate in India is transportation is at a halt. State borders are sealed and there is no clue of them opening up. Trades are no more into action resulting in company shutdowns. When the company is not reaping revenue, there are no chances of it to sustain its employees. The only option left with them is to wait and watch when the state borders are allowed to commence transport. All activities are interlinked and this is the reason why the whole country is deserted for time being.
Even huge profit earning groups like Zomato, Swiggy, Book My Show, and OLA are laying off employees on a huge scale. In such a scenario, a small business survival rate is suspicious.
What is the transition probability?
Medical health experts and workers have ensured that the coronavirus is presently at its peak and a significant slowdown is expected in the months to come ahead. With this, curators are finding policies and frameworks to set back the economy. Although it might take around the next two years to normalize the economic health of the country, at least initiatives can be taken.
Unemployment Rate Check With Other Countries
To conclude, the unemployment rate in India is presently higher are compared to the U.S and all other countries. A probable decline in cases on COVID-19 can also reduce containment zones countrywide and allow people to get back to their work in full swing.
But the inappropriate behavior of state and central government relevant to rent, taxes, salaries, and lockdown guidelines is just adding to the frustration of common people. Now, it is just a wait and observes the situation for the people who are clueless about what’s next!
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