NEW DELHI – The number of people employed fell to 375.45 million in May from 390.79 million in April, according to the Centre for Monitoring Indian Economy (CMIE).
At least 15.33 million Indians lost their jobs in May, erasing gains achieved since July 2020, a situation that may adversely affect consumer spending and economic revival.
The number of people employed fell to 375.45 million in May from 390.79 million in April, according to the Centre for Monitoring Indian Economy (CMIE). In April and May, the number of people employed in salaried and non-salaried jobs fell by almost 23 million as the second wave of the pandemic infected millions of Indians, and states imposed lockdowns to stem the spread of the virus.
COVID-19 second wave: Rural demand may be hit despite normal monsoon
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This shows how the second wave of the pandemic has unleashed its wrath on the rural jobs market.
NEW DELHI – Rural India has erased gains made since October when Covid-19 cases had begun to decline to record 2.84 million job losses in April for the salaried class alone. This is expected to impact rural consumption.
Salaried people in India’s rural pockets stood at 27.87 million in April, down from 30.72 million in March, and 33.46 million in February, showed monthly data from the Centre for Monitoring Indian Economy (CMIE). Around 5.59 million salaried employees lost their jobs during April and March.
This shows how the second wave of the pandemic has unleashed its wrath on the rural jobs market. Job losses for the salaried class in India’s rural belt were almost four and half times more than the number of salaried jobs lost in urban pockets in April. Overall, 3.4 million salaried jobs were lost during the month.
Ranjula Bali Swain, Arup Mitra
Many components within the informal sector share close linkages with the formal sector. In such a situation if the formal sector is growing rapidly it is natural that the informal sector would benefit from the percolation effects. However, in reality the informal sector is characterized in terms of low productivity and meagre earnings, explaining considerable overlaps with poverty and slum-dwelling in cities.
Agglomeration economies work and they contribute to productivity growth as a result of which the real wages in the cities tend to be higher compared to the rural areas. Yet, urban poverty exists which warrant an explanation. Some of the reasons of course can be envisaged in terms of a high degree of heterogeneity this sector possesses. There are residual activities with almost no entry barriers and they often involve excess supplies of labour relative to demand. Similarly, there are self-employed households both in manufacturing and services, op
A world-wide problem that has posed serious concern is relating to the lack of surge in total factor productivity growth. The countries which are able to sustain high rates of growth or low growth rates at very high levels of per capita income are following the resource intensive path which can have serious repercussions in terms of future availability of resources. Faster economic growth based on total factor productivity growth, on the other hand, implies resource saving approaches being followed. Innovations resulting in technological progress, and better utilisation of the new technology are the key to higher output growth relative to input growth, which is defined as total factor productivity growth (TFPG). In other words, with the same amounts of inputs the obtainability of higher returns is envisaged as TFPG.
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