Unemployment During COVID-19 in India

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The COVID-19 pandemic has left the whole world in a dire state of uncertainty crippling the economic conditions worldwide. The worst hit country of all has been India. Even though the infected cases and death rate is a lot lower than other countries, still the effects on the economy has pushed India’s backs against the walls.

There are chances of an economic recession that is predicted to be worse than the great recession as was seen in 2008, when the stock markets in the Wall Street and the real estate business in the United States crashed and millions of people were left unemployed on the streets.

Poverty Crippling Indian Economy

A quite similar scenario can be seen in the case of the Indian economy right now. The unemployment rate as per the recent report by The CMIE (Centre of Monitoring Indian Economy) has shown a massive increase of 24.6% on a national level as of 23rd March, 2020. On a State/UT level, the worst hit State/UT is Puducherry with an unemployment rate which stands at 75.8%.

The Labour class which includes migrant daily workers, who are currently struggling to survive and are trying to find a way to get back home, have been the worst hit of all in this crisis, due to negligible amount of funds and no work. Since the lockdown, almost 10% of the middle class families have been threatened to be evicted from their rental apartments.

The Lack of Resources and Opportunities

Even after the lockdown relaxations in various States and districts, people are trying to find ways to make ends meet. Finding jobs opportunities in the current situation presents to be a herculean task since most Start-ups, companies and airlines which used to employ a large number of the population are now at the brink of bankruptcy.

Recently, the report by CMIE has shown that the tours and travel industry which is home to around 60 million workers has suffered huge losses and will be laying off around 42 million employees from their jobs, the real estate sector has already seen a loss of 14 million jobs and the flourishing restaurant industry has suffered irreparable losses of millions of rupees subjecting most of the restaurants from ever opening again or creating any employment opportunities.

Such abnormal rise in unemployment is being witnessed for the first time in Indian history. This pandemic has changed the whole world scenario by shifting almost 70% of the work, to be done from home, making it even more difficult for the underprivileged members of the society from getting any opportunity due to either lack of technical knowledge or lack of resources due to poverty.


As of now the future seems to be bleak with a lot of difficulties ahead for everyone especially the unemployed daily wage workers. Still the authorities are devising methods to curb this menace so that people can return to their normal lives but the definition of normal may not be the same for us forever even after this pandemic gets over.

Written by - Max Croson

Edited by - Arnav Mehra

Unemployment During COVID-19 in India Unemployment During COVID-19 in India Reviewed by Arnav Mehra on June 24, 2020 Rating: 5

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