While employment started stagnating and then even declining, the count of unemployed did not rise.
The wheels of the economy have began to turn more rapidly but the employment is but to match the pace of financial recovery. The employment fell in India for the second consecutive month in November 2020. In October, the count of the employed had fallen by .1 per cent (60 lakhs), although in November, the fall was bigger at .9 per cent (35 lakhs), according to the Centre for Monitoring Indian Economy. The recovery in employment, from the steep fall in the course of the April lockdown was wise initially but, it slowed down nicely just before the recovery was completed. In truth, the recovery progressively slowed down in July, August and September just before reversing in October and November.
CMIE added that it seems that the recovery phase is more than and a decline is setting in once again. It is intriguing to note that the quantity of persons who report themselves as unemployed and are also actively searching for work has also been declining. While employment started stagnating and then even declining, the count of the unemployed did not rise. On the contrary, it declined. This is an anomalous behaviour of labour exactly where, even if employment does not rise, the count of the unemployed keeps declining, the report underlined.
The findings recommend that the labour is finding discouraged by the lack of jobs on supply and is exiting the active labour markets. Consequently, in spite of partial recovery, India is bearing the brunt of falling employment and witnessing falling unemployment collectively. The sustained loss of jobs and also the apparent falling wage prices or earnings levels is discouraging workers from remaining the labour markets. The shrinking of the higher labour force indicates that about 50 lakh prospective workers have left the labour force completely, which is worrying.
Meanwhile, the government has also been working to alleviate the job crisis. On Wednesday, the Union Cabinet authorized an expenditure of Rs 1,584 crore for the existing economic year for Atmanirbhar Bharat Rojgar Yojana (ABRY). The cabinet also authorized Rs 22,810 crore for the whole scheme period 2020-2023. The Rozgar Yojana scheme is introduced to enhance employment in the formal sector and incentivize the creation of new employment possibilities in the course of the Covid recovery phase beneath the Atmanirbhar Bharat package.