Rising Unemployment rate in India - A bitter data - April 2020

Rising Unemployment rate in India - A bitter data - April 2020

The news of the Covid-19 impact has been talked about globally for the past two months. In the Developed and developing nations, there was a lock down was imposed for more than a month. The total number of cases were exceeded 40 Lakh till date. The Covid-19 death toll is said to be around 2.77 Lakh and more than 14 Lakh people were recovered.

The Unemployment rate in the United States has been rising for the past five weeks due to a Lock down. This is the similar situation for India also. According to the recent data announced by CMIE, the unemployment rate stood at 23.52 Percent in the month of April 2020. It was 8.74 Percent at the end of March 2020.

As per the weekly ended data, the Country's unemployment rate were about 27.11 Percent on 3rd May. The number of people who lost their jobs in urban areas is higher than the Rural. There is a statistics that 12 Crore People have been unable to continue their regular job, since the Lock down. So, it is showing that One in Four people have lost their jobs.

The Maximum unemployment rate by the states in India, Puducherry headed with 75.8 Percent in the month of April 2020. The unemployment rate of 49.8 Percent in Tamil Nadu, 46.6 percent in Bihar and 47 Percent in Jharkand. Haryana's jobless rate were stood at 43 Percent.

Significantly, the economy of Tourism, Hotels and Restaurants has suffered a huge downturn. The said information was taken based on Organized Sectors. This may be higher on Unemployment rate, if considering the number of daily wage workers under Unorganized Sector. There are around 50 Percent of people who are working in Construction, Trade, Hotel and Restaurant will consider as unorganized workers.

Although the lock down will be lifted slowly over the next few days, most business are not in a position to operate regularly. At the same time, most of the migrants are returning to their hometowns. This will create a scarcity on workers and it is doubtful whether the Manufacturing sector will again accelerate.

The Coronavirus is said to be a cause of Economic backslash, the realty is that the Economy slow down is there for the past 18 months. Currently, it is said to be a Global Recession and Economic Crisis around the world. The Jobless claims were also increasing by every week. In such a scenario, the International Labour Organisation warned that there are 40 Million people will be forced into Poverty in India alone.

While a few nations have come forward to say that they have found a Vaccine or Medicine for the Covid-19, the reality is the Recession period, GDP growth and the Unemployment rate. So, it's the right time to ensure the essential things were provided to everyone.

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