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LATEST NEWS UPDATES | Jobless growth: the pandemic has revealed India’s crisis of unemployment -Himanshu

Jobless growth: the pandemic has revealed India’s crisis of unemployment -Himanshu

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published Published on Mar 29, 2021   modified Modified on Mar 29, 2021

-The Indian Express

The current model of economic growth prioritises capital over labour and is unlikely to resolve the unemployment crisis.

COVID-19 infections are once again on the rise with daily infections crossing 60,000 per day last week. This is considerably higher compared to the reported infections during the same period last year when the numbers were less than 500 per day. What is obvious is that the pandemic is far from over despite the availability of vaccines. However, unlike last year, the response this time has been muted with no nationwide lockdown. One of the reasons for the differing responses is the lesson from the unintended consequences on the economy of the strict lockdown last year. While aggregate estimates on the growth rate of GDP showed a sharp contraction in economic activity (the economy shrunk by 24 per cent in the April-June quarter of 2020) the impact on lives and livelihoods is still unfolding even though the sharp contractionary phase seems behind us.

The extent of the loss of lives and livelihoods is becoming clear only now, with detailed data from the Periodic Labour Force Surveys (PLFS) — the latest round of which is for the April-June quarter of 2020. This is the first official report on the estimates for the quarter, which witnessed the worst impact with the lockdown in force until the middle of May. Visuals of thousands of migrants walking back to their villages are still fresh in the mind. While many have returned to urban areas in the absence of jobs in rural areas, many did not. The PLFS, which captures the employment-unemployment situation in urban areas, provides some clues to what happened.

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The Indian Express, 29 March, 2021, https://indianexpress.com/article/opinion/columns/india-unemployment-crisis-economic-growth-covid-pandemic-7249627/


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