With the widespread coronavirus pandemic, the challenge of unemployment rate has begun to soar because of lockdown, the burden of lost wages has brought a different view to the economy.
From the sources of the Center of Monitoring Indian Economy (CMIE) the unemployment rate in the urban region was shot up from 0.9% in January to 18.7% in March. As the less educated are often poorer, they remain in the workforce even when they are getting minimum payment as compared to their previous salaries.
Amit Basole, a labour market researcher at Azim Premji University believes that the situation has got worse and this is even worse than demonetization. Economic recessions are lumbering over many months. This is unexpected.
Looping onto the monthly figure from the CMIE, it showcases that in the urban regions, unemployment among the uneducated is higher than a graduate degree (13%) for the first time since early-2016 when the surveys began. Radhicka Kapoor, an economist at the Indian Council for Research on International Economic Relations states that there has to be some financial support made to save some part of it.
The United Kingdom has recently announced that it would help financially with 80% of the wages to all workers, with a minimum amount of £2,500 per month to every individual. Moreover, Norway, Denmark and several other countries have also announced a particular income support for the workers.
Rathin Roy, a former member of the Prime Minister’s Economic Advisory Council believes that the government needs to support at least ₹2 lakh crore for the entire nation. Due to the COVID-19 pandemic the economy has shocked unexpectedly. Most of the individuals are employed in service sector jobs in repair, construction, and unorganized transport. All of these have come to a temporary shut down.