The COVID-19 affected the whole world into a different scenario and this affected the job sector in a very bad way. Urban employment in India has been nearing 12% highest for more than 10 months this year.

During the last week of May, the national unemployment rate reached 8.67% from 7.4% before. The urban employment at this time touched 11.72% (May) from 9.55% (April) During this time the rural unemployment rose to 7.29% from 6.37%. It depicts that the rural unemployment rates are also higher than that of urban rates. The lockdown has been continued and it restricts the job market on living. This affects economic activities.

The lockdown scenario of this year is entirely different from last year. Some of the financial and brokerage organizations downgraded GDP forecast. The famous man K R Shyam Sundar, the labor economist, said that the year 2020 was the worst due to the complete national lockdown which led to the economic activities closure. But unemployment rate of 12% even without a national lockdown seems to be tragic.

As per CMIE (Centr or Monitoring Indian Economy) data, during the last year, the national unemployment rate was 24% while the urban unemployment rate was 27.83%. Sundar also said that all the micro lockdowns in all states are equivalent to a quasi-national lockdown. The normal workers, contractual workers, and gig workers face this situation hardly and become the victims of job loss.

Mahesh Vyas, the CMIE chief, said that the new second wave of Covid-19 virus has stolen the economic recovery. For this year, many of the professional forecasting agencies scale back their projections. And also the new investments in huge numbers to make jobs are unlikely to be done in the year.

On the other side, the urban service support and urban informal sector system are nearly collapsed. Many urban markets have become non-functional and that’s the major reason for the high urban unemployment rate. Likewise, the lesser rural unemployment rate doesn’t mean that the situation over there is better. Rather Rural India witnesses the intensification of underemployment and low income.

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