COVID-19 outbreak: Joblessness rate triples to over 20%
The average monthly unemployment rate in the country has almost tripled in the past 25 days of the lockdown to battle the deadly coronavirus pandemic, breaching the unprecedented 20% mark.
The 30-day moving average unemployment rate in the country, as of date, stands at an astounding 20.34%, according to data available with the Centre for Monitoring Indian Economy. That number was at 7.58% on March 25, when the nation-wide lockdown was announced.
Expectedly, the unemployment rate has accelerated as the lockdown has extended beyond mid-April into early May. An analysis of the data showed that while the unemployment rate doubled in the first 21 days of the lockdown, it almost tripled in just the next four days as the lockdown extension was announced.
The urban unemployment rate is higher at 21.75%, compared to rural unemployment at 19.71%.
According to the latest available numbers, the total workforce in India is estimated at 47.41 crore, out of which 33.69 crore are rural workers and 13.72 crore are urban workers. An estimated 90% of this workforce (43.7 crore) is in the unorganised sector.
Most of these workers are not even looking for jobs as their priority is to go back to their villages at a time when an estimated 70% of all economic activity has come to a halt.
The unemployment rate is derived only from the fraction of people who are actively looking for jobs but cannot get one.
Experts say that the numbers have risen due to the joblessness among daily-wage workers. “More than the data in terms of percentages, we should look at the trend. Right now, all figures are trending upwards reflecting the closed down economy. As I see it, a lot of the urban workforce -- mostly blue-collar workers -- have gone back to their villages. They are primarily the gig economy workforce,” says Kris Lakshmikanth of Headhunters.
As a result, many e-commerce companies, delivering essential commodities, are facing a dearth of labour, he adds.
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