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LATEST NEWS UPDATES | Growing Distress and a Falling Unemployment Rate: What is going on in the labour market? -Ishan Anand and Anjana Thampi

Growing Distress and a Falling Unemployment Rate: What is going on in the labour market? -Ishan Anand and Anjana Thampi

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published Published on Sep 17, 2021   modified Modified on Sep 20, 2021

-TheIndiaForum.in

The Periodic Labour Force Survey for 2019-20 has thrown up some unusual and contradictory patterns in employment and unemployment. However, the trends in the labour market over three years of the PLFS from 2017-18 onwards are clear and cause for worry.

The pandemic has had a disastrous impact on lives and livelihoods. The national lockdown of March–May 2020 will be remembered for its devastating neglect of migrant workers and the unprecedented, and yet avoidable, humanitarian crisis. Several non-government surveys reported heightened distress in different parts of the country due to a loss of wages and employment, and an inadequate availability of food and other essentials during and after the lockdown.

The devastation caused by the pandemic follows the retrogression in economic growth in the late 2010s that has been attributed to domestic factors and policy induced shocks (Nagaraj, 2020). The impact of demonetisation in 2016 and the poor implementation of the Goods and Services Tax in 2017 added to the woes flowing from rising non-performing assets with banks and a fall in investment and exports.

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TheIndiaForum.in, 17 September, 2021, https://www.theindiaforum.in/article/rising-distress-and-falling-unemployment-rate-what-going


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