Unemployment and Coronavirus
UNEMPLOYMENT AND CORONAVIRUS
- Chetan Agarwal, Symbiosis Law School, Pune
With the age-old routine, he was ready to go to the nearby market, where people would assemble and would be hired for daily works. Nevertheless, he went to catch a bus, which would drop him to his destination. After longing for around 30 minutes, he was able to catch up a bus which was overpacked. Though, this was unusual, but he was more tensed as he was late and would be able to fetch any work when people would have been already hired. He reached the spot and found people waiting, but the market was not as usual. People were discussing about virus, belonging to unprivileged section of the society, he turned a deaf ear and moved on. But who knew that such was the reality of every market in the Country where the pandemic [1]has started expanding its reach.
India being the second populous country in the World [2]with 131,15,59,204 people, and with varied group of people. The number though seems very difficult to digest but that’s the reality and it can’t be denied. India being an agrarian Country worsens up the situation of unemployment. And contributing to this, around 47.9% of the population is below the age of 21 years[3]i.e. majority of the population of India is Youth oriented.
As per data released by the Government in the year 2018, 6.1% has been identified has the official unemployment rate in India, which has also been looked upon as being the highest among the 45-year long period [4]. This was the official data released by the Government, but there has been a huge hue and cry that it exceeds the portrayal.
This all seems vague, when one thinks that there are number of employments, but just to clarify the thoughts, that unemployment is not only because of non-availability of jobs, but is also dependent on the number of educated youth not willing to take up jobs which they feel are sub-standard as per their educational qualification.
In order to eradicate poverty and to solve unemployment issue in the Country, Government had earlier come up with the MNERGA scheme, where it talked about providing guaranteed work. But, due to recent breakdown, MNERGA has seen demand surge to 9 year high with 5.47 Crore household seeking MNERGA works [5]. This data in the present scenario speaks a lot about the unemployment scenario in India, where the situation has worsened in case of unorganized sector, as labour has started pulling back to their home leaving behind the work.[6]
With many been strangled in the period of lockdown, it has been estimated that the unorganized sector would be the most affected and around 136 million people may end up losing jobs after the pandemic.[7]This scenario is very much possible as due to lockdown, which has been acclaimed as the only way to stop social meets and further spreading of Corona Virus, has shattered the life of poor who has been strangled to live up to their own. Even though, Government has announced several relief packages, but still such measure cannot guarantee that their would-be employment for such people. As, India is bracing up its fight against Corona and has taken stringent measures to stop the spreading of it, but still the Country has managed to cross the 4000 plus mark. This though has been under a lot of control as compared to developed nations, but in it, with the tireless effort of the Government, many workers from factory had braced themselves in letting off to their hometown, when such factory were shut due to overall lockdown of the Country.
Shredding some light on the similar situation which China is undergoing after relative recovery from the Corona widespread, it has been estimated that around 205 million Chinese workers are unable to find jobs or has been unable to go back to their old posts. [8]China being the largest populous Country in the World was affected by the virus and has been able to control the impact, but with news prints popping out over unemployment remains an irreplaceable fact, and the situation lining up of unemployment in India also remains a key address.
With news reporters gleaming daily on the isolation wards of the State and the report of not maintaining safe distance in the isolation [9] wards itself raises multifaceted question and brings us closer to the very fact about the Country’s Economy, which further could be linked with Unemployment. With the crisis following, the GDP rate of the Country has also been lowered by Fitch [10], which indicates that though India wins the fight against corona, but it will remain a tuff fight to bring the economy on track. And, such could be potentially linked with unemployment, which will remain a decisive factor in the overall economic growth of the Country. This also gives a clear picture of the situation which might persist after successful fight with the disease.
Looking forward to every terms and details, it is always witnessed that due to large population of the Country, there remains a large-scale unemployment today and even before the outbreak of the virus. The main problem which would arise is that it tills date remains uncertain as to removal of lockdown from the Country and most importantly the uncertainty looming as to development of cure for the disease. This scenario collectively refers to the uncertainty phase and the very basic question arising as to even after lockdown ends, whether such business organization would be fully functional and if yes then would it be able to go through the liquidity crunch which arose during the lockdown. This answer will determine the faith of the unemployed people, as they won’t be earning as much, they were able to earn because of the sudden setback due to Corona Virus in the Country.
Talking about the current aspect, with news being published in a local weekly magazine of Guwahati City, that even after such lockdown, unemployed youths had turned in large numbers for application for temporary post.[11] This scenario depicts the crisis which the Country along with other Nation are going to face after the outbreak is controlled or comes to an end.
With India continuing its fight against Corona Virus and expert opinions and State’s request for extension of lockdown period [12] it would be relative to witness as to how the Country finds its place way back pushing aside the unemployment situation and finding its place in revamping the economy which would suffer a major crunch due to the outbreak.
References :-
[1] WHO announces COVID-19 outbreak a pandemic (WHO, regional Office Europe, 12 March 2020)<http://www.euro.who.int/en/health-topics/health-emergencies/coronavirus-covid-19/news/news/2020/3/who-announces-covid-19-outbreak-a-pandemic> accessed 6 April 2020.
[2] U.S. Census Bureau Current Population (The United States Census Bureau, 6 April 2020) <https://www.census.gov/popclock/print.php?component=counter> accessed on 6 April 2020.
[3] Age Structure and Martial Status (Office of the Registrar General and Census CommissionerIndia)<https://censusindia.gov.in/Census_And_You/age_structure_and_marital_status.aspx> accessed on 6 April 2020.
[4] ET Bureau, ‘Is the Job Scene In India Bad? Depends On How You See It’ The Economic Times(1 June 2019).
[5] Harikishan Sharma, ‘MNERGA Work Demand At 9-yr High’ The Indian Express(New Delhi 3 April 2020)
[6] ET Bureau, ‘Coronavirus Lockdown: Labour Pain-Infection Worry Keeps Attendance Low At Sectors’ (28 March 2020)
[7] Goutam Das, ‘136 Million Jobs At Risk In Post-Corona India’ Live Mint (31 March 2020).
[8] Frank Tang, ‘Coronavirus: Chinas Unemployment Crisis Mounts, But Nobody Knows True Number of Jobless’ South China Morning Post (Beijing 3 April 2020).
[9] Sandeep A Ashar,. ‘Mumbai: At Homeless Shelter, Cancer Patients Kept In Hall With Beggars And Migrant Workers’ The Indian Express (Mumbai 4 April 2020).
[10] Chitranjan Kumar, ‘Coronavirus Impact: Fitch Cuts India’s GDP Growth Outlook to 30 Year Low of 2% for FY 21’ The Business Standard (New Delhi 3 April 2020).
[11] Atiqul Habib, ‘Amidst Lockdown Assam’s Unemployment Scenario Loud & Clear, Thousands Gather to Apply for Temp jobs in Guwahati’G plus(Guwahati 7 April 2020).
[12] Express Web Desk, ‘COVID-19: Centre ‘Thinking’ Of Extending Lockdown After April 14’ The Indian Express (New Delhi 7 April 2020).
