Five million salaried people lost jobs in July; their ballooning numbers a source of worry: CMIE
Nearly five million salaried people lost their jobs in July, taking the total number of job losses in the category to 18.9 million despite recovery in overall employment rate which is driven by the informal sector, the Centre for Monitoring Indian Economy said, cautioning the ballooning numbers of job losses among salaried class is a source of worry.
CMIE data shows 17.7 million salaried jobs were lost in April 2020 and another 0.1 million jobs were lost in May. Though 3.9 million jobs were gained in June, additional five million jobs were lost in July.
“On a net basis, the plight of salaried employees has worsened since the lockdown began as by July, their losses had swelled to 18.9 million,” CMIE said, adding it is an unhealthy recovery and the situation has worsened for the salaried jobs.
It is estimated that only 21% of all employment in India is in the form of a salaried employment which is more resilient to economic shocks. As a result, job losses among them accounted for only 15% of all job losses in April.
“While salaried jobs are not lost easily, once lost they are also far more difficult to retrieve. Therefore, their ballooning numbers are a source of worry,” CMIE cautioned. Salaried jobs were nearly 19 million short of their average in 2019-20.
CMIE had earlier estimated 121.5 million jobs were lost in the first month of the lockdown in April. This loss narrowed down to 100.3 million in May which further narrowed down significantly to 29.9 million in June and now to just 11 million in July.
While in April, 30% of the employed persons had lost their employment, by July less than 3% were bereft of their source of livelihood, CMIE said, adding at 11 million job losses, it is still a significant setback.
According to CMIE, the recovery in jobs reflects, to a great extent, an unlocking of the economy from the draconian cessation of practically all economic activities save a few in late March and through most of April.
Perhaps, it also reflects the desperation of Indians to get back to some employment after a rather prolonged involuntary break, it said.
There is no problem all these agencies are Anti National just look at the 9.00 PM Debates if this was true at least one TV Channel would have spoken about it. Don't worry "Sab Changa Si"!!!
Most neglected class are the salaried class and/or formal sector. Government said 80 crore people in India are feed by the go nment during this lock-down. Why not extend this to all citizens of India till we are back to normal. There are many people who are jobless in formal sector and those who don't fall in go nment's "80" crore. There are so many schemes for the people in "poor" category but none for the neglected class. People can cut spending in almost everything but people have to eat at-least two times. Moreover, I think the job lost in formal sector will not be back within one year (minimum).
Teaching institutions and health sector are least affected by recession....the private institutions are using Covid-19 to make profit
Thankfully we have temples, unconstructed bullet trains, water-planes, and statues to safeguard us. Abki baar fir bhagwa sarkaar.
I am assistant professor in one of the college under VTU Belgaum KARNATAKA. I was working since 9 months in T JOHN INSTITUTE of TECHNOLOGY Bangalore KARNATAKA. Was having 10 years if experience. Suddenly college management decided to releave all probationary staff members and I was one among them.
I had said to resign forcefully from management side.
Since I was staying on my earnings n my work was only the source if income for me. I have been searching job since e months. But no openings n nothing I can find..
I have no other option den ending my career n to start begging near temples.
Its Goverments responsibility to ensure the Jobs are created in Goverment and Private Sectors.They need to pay attention to the Middle class sector which is badly affected always.
And another segment of salaried people have faced massive pay cuts, all this will drive down demand unless stimulus is provided by govt and RBI
V Bright Saigal
Allow employees work on half day basis o shift.
God bless India.
How a small country named Vietnam saved itself from COVID.
But Govt still pretend to deny it..
Unless n until, they accept reality, steps towards resolution could not be worked out..
Involuntary job loss is worse than inflation.Situation will become a stagflation in India since food inflation has been climbing northwards in recent months to 7 percent. Xavier VK
we are in worst position I have ever seen in 45 years
Good news.Now they can beg infront of Ram Mandir
The economic outlook remains grim since the financial impact is yet to be seen in the financial sector where there could be several cases concerning the delinquency and NPA to rise further. it may lead to contagion impact as we have witnessed in 2008-09 crisis. Without the support of the go nment, the situation would remain fluid considering the high levels of unemployment.
TEA Seller prime minister is working for millionaire ..
The pain of jobless people is unbearable.
Still worst time to come since Govt is utterly failed to revive economy which is down even before lockdown