Pandemic Pulls Down Incomes And Consumer Confidence

by GoNews Desk 2 years ago Views 3912

Pandemic Hits Income Consumer Confidence
Improvements in the Labour Force Participation Rate and Employment Rate have been observed after the COVID second wave subsided, but job quality has gone down as well. In fact, the salaried section has suffered due to the successive pandemic waves, and they have not been able to fully emerge from them as yet. There has been no significant improvement in the job quality of this group which has also been hit by severe unemployment since the first lockdown itself.  

The Labour Force Participation Rate and Employment Rate have been improved after the second wave of the pandemic largely because of daily wage and farm labourers. English newspaper The Hindu published a report based on CMIE, RBI, and MOSPI findings which stated that conditions have not improved much following the surge.

The report has presented figures from 2012 to July 2021 which show that where employment was rising earlier, it is now decreasing. A survey found that 80% of respondents feel that the employment situation has been worsened by the pandemic. Relatedly, 70% of answerers also believe that the pandemic worsened the economic situation of the country.

The pandemic adversely affected the economy and employment situation of the country, and consequently, people’s income also took a hit. The survey tells us that more than 65% of respondents hold that their incomes fell during and after the pandemic. This decline in incomes, coupled with price inflation, is causing consumer confidence levels to precipitate as a result.

The RBI has recently reported that the Consumer Confidence Index (CCI) dropped to 48.6 in the month of July. The drop in CCI increases the apprehensions of income drop and price inflation. The CCS (Consumer Confidence Survey) is a functional indicator of economic performance, and more specifically, of individual consumption. In this context, it is misleading to state that the entire economy is improving.


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