Mumbai: Coronavirus Pandemic has disturbed the normal life, it has massively damaged the country’s economy and left many unemployed. As per recent reports of Centre for Monitoring Indian Economy (CMIE), over 2.7 crore youngsters in their 20s lost jobs in April.
“This has serious long-term consequences. It is during this era that young India builds its career in the hope of a bright future, ”the Times of India quoted Mahesh Vyas, MD and CEO of the economic research house CMIE.
However, the overall unemployment rate has slowed from 27% to 24% in the week ending May 10. Job loss among vulnerable people is likely to increase the proportion of households in debt, the TOI report cited CMIE.
According to CMIE data, 33 million men and women out of 30 lost jobs in April and 86% of job losses were among men. Job losses are very high among younger age groups.
“Collectively, 44% of the people working in 2019-20 were under 40 years of age. However, 52% of the job losses were among those who were under 40 years of age. On the contrary, while 40% or more of the total employees employed in 2019-20 accounted for 56%, they accounted for 48% of the job losses, ”the publication quoted Vyas.
“Job loss will have an impact on savings among the younger population. While cash can be conserved in homes during these times, there is loss of jobs among young disadvantaged families of excess cash who are mostly left to buy homes or durables or save for retirement. This loss of savings will have long term effects, ”said Vyas.
Sectors and services such as airlines, manufacturing, hotels, restaurants, media, and entertainment have been deeply hurt by the outbreak of the Covid-19 epidemic and the subsequent lockdown imposed to prevent it. However the government has announced to limit economic activity which may not be sufficient to reverse the losses.
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