Reports from across the globe point towards rising unemployment. A recent study by The International Labour Organisation (ILO) in its report titled ‘ILO Monitor 2nd edition: Covid-19 and the world of work’, states that about 400 million people working in the informal sector in India are at risk of falling deeper into poverty due to the Coronavirus crisis which is having ‘catastrophic consequences’. It is expected to wipe out 195 million full-time jobs or 6.7 per cent of working hours globally in the second quarter of this year, the UN’s labour body has warned.
“Workers and businesses are facing catastrophe, in both developed and developing economies. We have to move fast, decisively, and together. The right, urgent, measures could make the difference between survival and collapse,” ILO Director-General Guy Ryder said.
The overall unemployment rate may have surged to 23%, with urban unemployment standing at nearly 31%, Centre for Monitoring Indian Economy (CMIE) estimates showed.
The employment situation worsened from the start of March, before the lockdown was triggered, and then soared in the last week of the month and the first week of April, CMIE data showed. The study showed that in March, the labour participation rate fell to an all-time low, the unemployment rate rose sharply and the employment rate fell to its all-time low.
Mahesh Vyas, CMIE CEO told India Today, “The need of the hour is for the government to push for economic growth while stopping Coronavirus cases from increasing. If these two things don’t move simultaneously, it will be catastrophic for the economy.”
He added that the industry is doing the right thing by asking government for help because without that we cannot bring growth back on track.
Highlighting migrant exodus, he said that unemployment in coming months will be higher in the unorganised sector as compared to the organised sector & bringing the migrant population back to the cities will be a herculean task.
The report suggests that the global economy will see a steep decline because of Covid-19 in months to come and this will impact developing countries like India.
