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LATEST NEWS UPDATES | Why Were 1.3 Crore Jobs Lost in June? -Subodh Varma

Why Were 1.3 Crore Jobs Lost in June? -Subodh Varma

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published Published on Jul 10, 2022   modified Modified on Jul 10, 2022

-Newsclick.in

Most of the job losses were in agriculture, but 25 lakh salaried jobs were also lost.

A perfect storm of delayed monsoon, languishing economy and continued inaction of the government on the jobs front has led to an astonishing decline of 1.3 crore from the total number of employed persons in the country in June this year, according to the latest CMIE estimates. In May, the number of employed persons were 40.4 crore which plummeted to just 39.1 crore by June end. As the chart below shows, employment has been hovering around the 40-crore mark for the past year, but the nose-dive last month has exposed the extreme vulnerability of India's working population.

An employment level of 39 crore means that only about 36% of the working-age population is actually employed in India. This tears apart the lofty talk of the advantages of ‘demographic dividend’ – a young working population – for India and reveals the dire and distressful situation of the Indian people.

Other measures of employment too have worsened. The labour participation rate (LPR) – the share of people who are working or willing and seeking to work – has also dropped from 39.91% in May to a low of 38.3% in June. This is the lowest LPR since the first lockdown back in April-May 2020. A reduced LPR means that hopeless and frustrated people have quit the labour force altogether, preferring to perhaps wait it out till jobs become available again.

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Newsclick.in, 10 July, 2022, https://www.newsclick.in/Why-Were-1.3-Crore-Jobs-Lost-June


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