Coronavirus impact: 18.9 million salaried jobs took hit during lockdown
Salaried jobs declined by 22 per cent or 18.9 million during the coronavirus lockdown to 67.2 million by the end of July 2020 as against 86.1 million in 2019-20
- Aug 18, 2020,
- Updated Aug 18, 2020 6:20 PM IST
Salaried jobs have been badly impacted by the coronavirus lockdown despite a rise in overall employment rate. Salaried jobs fell to 68.4 million by the end of April due to the lockdown as against 86.1 million in 2019-20. The jobs declined further to 67.2 million by the end of July 2020, according to industry think-tank Centre for Monitoring Indian Economy (CMIE).
As per CMIE's CPHS (Consumer Pyramids Household Survey) estimates, nearly 17 million salaried jobs were lost in the April-June quarter, which is likely to get worse in July.
Meanwhile, informal jobs (non-salaried jobs) have returned and even increased with gradual resumption in economic activity post 'unlocking' of economy. Non-salaried forms of employment have increased from 317.6 million in 2019-20 to 325.6 million in July 2020, registering a growth of 2.5 per cent or nearly 8 million jobs. By the same comparison, salaried jobs fell by 22 per cent or 18.9 million during the lockdown.
The study revealed that the manufacturing sector was the greatest sufferer from employment losses, resulting in lower wage bill. Within manufacturing, textile sector was the worst hit as its wage bill fell by 29 per cent. Textile is a labour-intensive industry and this sharp fall in the wage bill implies a very sharp fall in employment in the industry. In a similar trend, leather, another labour-intensive industry, recorded a 22.5 per cent fall in its wage bill in the June quarter. Automobile ancillaries reported a 21 per cent decline in its wage bill and the automobiles' wage bill was down by 18.6 per cent, CMIE said.
Salaried jobs have been badly impacted by the coronavirus lockdown despite a rise in overall employment rate. Salaried jobs fell to 68.4 million by the end of April due to the lockdown as against 86.1 million in 2019-20. The jobs declined further to 67.2 million by the end of July 2020, according to industry think-tank Centre for Monitoring Indian Economy (CMIE).
As per CMIE's CPHS (Consumer Pyramids Household Survey) estimates, nearly 17 million salaried jobs were lost in the April-June quarter, which is likely to get worse in July.
Meanwhile, informal jobs (non-salaried jobs) have returned and even increased with gradual resumption in economic activity post 'unlocking' of economy. Non-salaried forms of employment have increased from 317.6 million in 2019-20 to 325.6 million in July 2020, registering a growth of 2.5 per cent or nearly 8 million jobs. By the same comparison, salaried jobs fell by 22 per cent or 18.9 million during the lockdown.
The study revealed that the manufacturing sector was the greatest sufferer from employment losses, resulting in lower wage bill. Within manufacturing, textile sector was the worst hit as its wage bill fell by 29 per cent. Textile is a labour-intensive industry and this sharp fall in the wage bill implies a very sharp fall in employment in the industry. In a similar trend, leather, another labour-intensive industry, recorded a 22.5 per cent fall in its wage bill in the June quarter. Automobile ancillaries reported a 21 per cent decline in its wage bill and the automobiles' wage bill was down by 18.6 per cent, CMIE said.