Economy
Employment crisis
More younger people have lost jobs than the older people
Indian businesses should not expect a V shaped recovery. Latest employment data states economic decline. About 20% of salaried workforce has lost their jobs in the past year.
In the first three quarters Indian economy faced a negative groth of 23.9%, 7.7%. It led to contracting of employment in three quarters by 18.4%, 2.6% and 2.8%. It means economic recovery and recovery of employment to pre-pandemic levels have stopped. About 50% of women have lost their jobs. Higher percentage of younger population ( in 20s and 30s) have lost their jobs than the population above 40 years of age. More graduates and post graduates have lost their jobs.
Economist Mahesh Vyas concluded in Business Standard, “Nearly fifteen million less people were employed in December 2020, nine months after the lockdown hit people’s livelihood compared to those that were employed before the lockdown in 2019–20. Those who lost jobs were concentrated in urban regions, among women, among the relatively younger workers, the graduates and post graduates and the salaried employees.”
Lack of employment leads to less spending power, which leads to adverse impact on the micro, small and medium businesses. Therefore, banking on the recovery will be a mistake.
