Job Security, Gender and Poverty Line: A Fun Combo?
Uncertainty has hit us all hard, some have faced it emotionally, some have witnessed financially, while some have seen it both ways.
Hello
Hope you all are doing well, taking care and eating healthy. This week, we talk about the economic and social impact of the pandemic based on recent reports and researches. We have tried to make it crisp, short and insightful for you. If you agree with us, do share it with your colleagues, family and friends.
So how many Indians have lost their source of livelihood?
The Indian economy has been facing hurdles ever since the beginning of the pandemic. The impact of Covid-19 on the economy became visible and concrete only after the reports have come on the shrinking Indian middle class, the gender gap report by the World Economic Forum, and the rise in inflation- expected to rise in the coming months.
The pandemic turned the lives of Migrants and the workers of the informal sector, topsy-turvy. In fear of losing their livelihoods to migrating to their villages during the lockdown, the informal labour force has been affected the most.
As per the data released by the Center for Monitoring Indian Economy, India's unemployment rate rose nearly to 8% in April from 6.5 % in March, which is the highest unemployment rate- with a loss of 7.35 million jobs.
The report mentions that 2.84 million salaried people lost their jobs in April 2021, reducing the number of salaried people in rural areas drastically.
Reasons for the increasing unemployment-
Lockdowns by the State Governments.
A growing number of Covid-19 cases.
Closures of Formal (tourism, travel, hospitality, retail) and informal (Household jobs) sectors.
Is the impact adverse?
For the salaried class of the rural areas, job losses have been almost four-and-a-half times more than in urban areas. This will impact the economy severely and push the middle class into poverty.
Experts say-
Moreover, experts have said that the Government should provide jobs through employment schemes like MNREGA.
(Sources: Indian Development Review, Center for Monitoring Indian Economy)
Did you know, last year women lost more income than the combined GDP of 98 countries? Fun right?
In our previous newsletter ‘Pandemic in 21st Century,’ we talked about the ‘Global Gender gap Index 2021’ which clearly indicated that it will almost take 135 years for men and women to achieve parity again.
Again, a new report from Oxfam International has come up in which women lost at least $800 billion in income last year and that's more than the combined GDP of 98 countries.
All over the world, women lost more than 64 million jobs last year which was a much greater loss for women(5%↓) than men(3.9%↓).
Gabriella Bucher, the executive director of Oxfam International observed that these conservative estimates don't include wages lost by women working in the informal sector like domestic workers, garment workers and street vendors.
Why does the gap exist?
Women are disproportionately represented in the jobs as they makeup 39% of employment but account for 54% of their job losses.
The gender pay gap was uneven before the pandemic too but the crisis widened it further.
Governments treats women’s jobs as dispensable.
What do you think the government or the citizens can do on their level to reduce this gap?
(Sources: Business Insider, CNN Business, McKinsey)
Poverty Line and Overcrowding around it
The first wave of covid-19 pandemic led 230 million individuals below the national minimum wage poverty line as per the report, titled “State of Working India 2021 – One year of Covid-19”.
The report was prepared by the Centre for Sustainable Employment at Azim Premji University which highlighted no improvement in employment and income to the pre-pandemic levels. 2020 didn't show any improvement which means the second wave would only add to the distress.
The reasons as to why the individuals are below the national minimum wage are:
The poorest 25% of households borrowed 3.8 times their median income, as against 1.4 times for the top 25%
Almost 52.4% of Indians work in the informal sector which has been affected severely.
Weak employment generation due to the lockdown.
The report talked about other aspects of the economy too, like, how women were affected, how people were underpaid and how many people are stuck in a debt trap.
The report analysed a policy response to the crisis. The study looked at the reach of Pradhan Mantri Garib Kalyan Yojana via the public distribution system. It noted that around 30% of PDS priority ration cardholders did not get the promised additional rations in Karnataka and Rajasthan. There were exclusions in Jan Dhan cash transfers too. Even the demands were not met through MGNREGA.
What do you think about this report and these observations? How well will the economy do in the coming times?
(Sources: The Wire, Business Today)
What else is happening?
China recently passed Anti Food waste law which made ordering too much food or sharing binge-eating videos, illegal.
Goa becomes the state with the highest positivity rate when every second person in Goa is covid-19 positive.
The ‘Out-of-Control’ rocket which was used by China to launch parts of its Space station will enter the earth’s atmosphere is the topic of concern for the US as it will fall somewhere nearby. (Most probably in the international waters)
Donald Trump’s exile from Facebook continues after ruling by Facebook’s independent oversight board.
Hope you found this week’s newsletter meaningful.
If you want to know more about our research- follow us on Instagram and LinkedIn.