Dramatically declining unemployment rate in India.

In the last few weeks, certain things have changed. The nationwide lockdown got over and India entered Unlock 1.0 and then Unlock 2.0. But, just before this, we experienced quite an unusual time where the only thing we knew was ‘Stay Home, Stay Safe’. People stayed at home but the economy entered into an unsafe territory. The slump is still going on and something which shot up as a result was unemployment. During the lockdown, the unemployment rate touched an alarming height of 23.4%.

But, according a recent data this rate has dramatically come down to 11.6% since June first week (when Unlock 1.0 started). From a time when almost one-fourth of the country was suffering from unemployment, such steep recovery looks weird but that’s what the stats say for now. Although, it’s understandable that post starting of the unlocking phase, the workplaces are slowly opening up and people are gradually getting back to work. Along with this, the labour participation rate has also increased.

What Does This Mean?

If the stats are to be believed, the economy is slowly getting back on track. People getting back to work is a really positive sign but there are some things which can not be ignored. Thousands and lacs of people who have lost their jobs during the pandemic are still looking for work. The stats reckon that people are getting back to work which means that those people were not fired from their jobs. But, what about those who lost jobs and are still unemployed?

The unorganized sectors of our economy and specially agriculture contribute to the employment rate. The statistics show that sowing the Kharif season has gone up by slightly more than 12% this year. So, it’s quite understandable that the labour participation rate has gone up. LPR during the lockdown stood close to 36% whereas in June it went up to 40%. But, is this enough? Will this lift our economy?

The matter of concern at the moment are the blue-collar jobs and also white collar jobs to some extent. The organized sector has suffered a huge blow during the lockdown and hence needs to get back on track. But, that would only be possible if the threat of infection gets reduced. And, that is simply worsening at the moment. However, we have to slowly and steadily get back to normal working conditions because we don’t have any other choice. 

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