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Economy Tumbles, 1 Crore Jobs Lost Since January -Subodh Varma

-Newsclick.in

The pandemic has heightened an already simmering economic crisis – and the worst is still to come.

The number of employed persons in India plummeted from about 40 crore in January to 39 crore in April 2021. That’s a loss of one crore employed persons, one of the steepest falls ever in four months, barring the brutal devastation caused by last year’s complete countrywide lockdown in April-May 2020. This emerges from latest estimates of employment from the Centre for Monitoring Indian Economy (CMIE).

January was actually a high in terms of employment, mainly because of demand in agriculture. As harvesting of wheat and other rabi crop got completed, jobs in agriculture disappeared, leading to a steep fall in employed people. [See chart below]

The rest of the economy obviously is unable to absorb anybody. The job situation has not shown any significant recovery since the lockdown last year. In fact, the past two years have seen corroding unemployment that has damaged family budgets, pushed down living standards and – as a dire side-effect – pushed down wage levels.

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