COVID-19 impact: 3.2 million salaried people lose jobs in July
There is also a shift towards self-employment and casual or gig employment where reflected in the minor improvements seen for small traders and wage labourers in July
August 03, 2021 / 12:18 PM IST
A majority of job losses were from urban regions where numbers fell from 48.71 million in June to 46.15 million in July. (Representative image: Shutterstock)
Structural weakness in core sectors led to loss of 3.2 million salaried jobs in July despite a tapering second COVID-19 wave and improvement in economic activity, data from the Centre for Monitoring Indian Economy (CMIE) showed.
Data showed that 76.49 million people held salaried jobs till July 31 compared to 79.7 million till June 30. A majority of these were from urban regions where job losses fell from 48.71 million in June to 46.15 million in July.
In the pre-pandemic times, as many as 86 million people were employed in salaried jobs till July 2019, compared to 76.49 people in July 2021. The labour participation rate remains 2.7 percentage points lower than its pre-COVID-19 levels. The employment rate remains 3.3 percentage points lower than the pre-COVID-19 levels.
The numbers reflect weak recovery in the employment market and job creation lag in the formal sector, economists said.
There is also a shift towards self-employment and casual or gig employment where reflected in the minor improvements seen for small traders and wage labourers in July — their numbers rose by 2.4 million to 30.42 million.
Further, 1.7 million more farmers engaged in the activity in July, compared to the previous month.
The CMIE further said that its Consumer Pyramids Household Survey data suggests V-shaped recovery after the second COVID-19 wave, but added it would be “wise to wait for more data before reaching any conclusion on recovery”.
Overall, 399.38 million individuals are employed (salaried and non-salaried) in India till July – up by 16 million compared to June. A major chunk of these additions are through agriculture which added 11 million people in July for a total of 163.25 million, followed by real estate which added 5.5 million people compared to June.