Indian labour market in worst condition since April-May 2020: CMIE
CMIE’s data about the Indian labour market states that the Indian labour market is in its worst condition since April-May 2020. The employment rate continues to worsen amidst the COVID-19 second wave.
The Centre for Monitoring Indian Economy (CMIE) has published its data about the Indian labour market. According to the data, the Indian labour market is in its worst condition since April-May last year. It also mentioned that the employment rate continues to worsen amidst the COVID-19 second wave.
The data states that the unemployment rate was 11.9% in May 2021. The 30-day moving average unemployment rate stood at 13% as of June 06, 2021. The employment rate, which is the most important labour market indicator, fell to 34.6% while the labour participation rate fell to 39.7%. The last four weeks saw a sharp deterioration in labour market conditions.
Mahesh Vyas, CEO, CMIE mentioned that a quick recovery of the lost informal jobs in the unorganised sectors, because of the lockdown, can be expected. There was also a drop in the employment rate independent of lockdowns.
The total non-farm jobs lost since January 2021 was 36.8 million with comprising of 23.1 million daily wage labourer, 8.5 million salaried employees and the rest being entrepreneurs.
The unlocking of the May 2021 COVID-19 lockdown will help recover about two-thirds of the job losses, which is 17 million of the 25 million non-farm jobs lost in May 2021.
Source – ET Auto