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LATEST NEWS UPDATES | Modi Govt is Blind to the Crushing Jobs Crisis -Subodh Varma

Modi Govt is Blind to the Crushing Jobs Crisis -Subodh Varma

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published Published on May 24, 2020   modified Modified on May 24, 2020

-Newsclick.in

Additional funds for MSMEs and MGNREGA are going to create enough jobs, but the economy will remain in doldrums.

There has been much mutual patting on the back and self-congratulation, after the Narendra Modi government announced two policy measures that could have a direct impact on job creation. These were: a special credit line of Rs.3 lakh crore for MSMEs (medium, small and micro enterprises) and an additional allocation of Rs.40,000 crore for the rural job guarantee scheme (MGNREGA). Coming as these did nearly two months after the countrywide lockdown was suddenly announced by Prime Minister Modi, the destruction wrought in the interim is far too huge to be erased by these palliatives.

Take a look at the jobless numbers, as estimated by Centre for Monitoring Indian Economy or CMIE through their weekly sample surveys. In rural areas, some 22 crore persons were estimated to be employed on May 10, 2020 [see chart below]. This is 5.6 crore less than the number of employed on March 22, two days before the lockdown began. And it is 6.1 crore less than one year ago (May 2019). The average employment in rural areas was estimated at 27 crore in 2019. This means that just to get back to last year’s level, another six crore jobs need to be created.

In urban areas, the situation is even more dire. At least MGNREGA will address some of the unemployment issues. But in urban areas, there is no such cushion. As shown in chart below, since the lockdown began, some 4.1 crore persons lost jobs in urban areas. One part of this was dramatically visible in the fleeing migrants, the searing images of their distress and fortitude, shocking the world. But this is just a fraction of the enormous job losses that have happened in urban areas.

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Newsclick.in, 24 March, 2020, https://www.newsclick.in/Modi-Govt-Blind-Crushing-Jobs-Crisis-MSME-MGNREGA-Covid-19


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