35 Lakh Jobs Lost In November, Unemployment Shoots Up: CMIE Survey
Barring a few, the COVID-19 epidemic has battered several industries. Millions of people have lost their jobs, and rebuilding the economy is going to be the biggest economic challenge of the year for the government. There has been a 20.3 percent decline in employment in November and 35 lakh jobs have been lost, according to a survey by the Center for Monitoring Indian Economy (CMIE).
According to the report, employment fell by 20.3 percent in the first quarter amid lockdowns, shrinking by 3.5 percent in the second quarter as the economy began to recover. However, this improvement lost momentum in the third quarter, even though there were signs of further improvement in the economy in the third quarter. 50,000 Indians lost their jobs in October, and more than 35 lakh in November. 39.36 crore jobs in November 2020 are still about 1 crore less than the quarter of March 2020 when the lockdown was announced.
In the first three weeks of December, more people joined the hunt for jobs. This also raised the overall unemployment rate. While the employment rate rose from 37.4 percent in November to a three-week average of 37.5 percent, the unemployment rate rose from 6.5 percent to 9.5 percent in the same period. It is expected that by the end of the third quarter the employment numbers will be around 39.5 crore if some major upheaval does not occur in the remaining days of this quarter. This means employment in the third quarter of FY 2021 will be 2.5 percent lower than the estimated 40.5 crore in the same quarter of FY 2020.
Earlier, the country’s largest bank State Bank of India also made it clear in a report that it will take a long time for GDP to reach the pre-Covid level. The SBI report states that it may take about three-and-a-half years from the fourth quarter of FY 2020–21, even seven quarters ahead of the fourth quarter of FY 2020–21, to regain the pre-levels of GDP.