The pandemic has had a sharp impact on jobs for the youth while salaried jobs have borne the burnt of the lockdown imposed to prevent the spread of the deadly infection, according to the surveys by CMIE (The Centre for Monitoring Indian Economy)
The Covid-19 pandemic had a sharp impact on elderly and people with lower immune systems such as infants, but Covid-19 did not affect the young adults unless they were infected by any disease. Most youngsters remain asymptomatic through a possible infection and the event is often no different from a common flu. But the Covid-19 has stored everything for everyone and for the adults it was job loss. The pandemic has had a sharp impact on jobs for the youth while salaried jobs have borne the burnt of the lockdown imposed to prevent the spread of the deadly infection, according to the surveys by CMIE (The Centre for Monitoring Indian Economy)
"Cumulatively, between April and July 2020, 11 million jobs were lost compared to the average employment in 2019-2020. But job losses in the workforce aged less than 40 were much higher, at 19.6 million," said Mahesh Vyas, CMIE MD and CEO.
Job losses and pay cuts have become one of the most serious issues during this pandemic. From the students who graduated this year to the ones who were working, everyone had to face pay cuts or no job opportunity in the worst case scenario. This crisis is expected to be much worse than the fallout of the global financial crisis of 2008.
How did it start?
To stop the spread of the corona virus amongst citizens, the Narendra Modi government had announced a nationwide lockdown beginning 25 March, 2020. The lockdown, however, lasted longer than anticipated, till the end of May. It has also been reintroduced in many districts by various state administrations, further impacting economic activity. No sector other than agriculture has remained unscathed from the impact of the pandemic, leading to the loss of skilled jobs across the manufacturing and services sectors.
Staffing experts said the worst-hit sectors have been hospitality, aviation, media, entertainment and automobile component manufacturers, and companies have been left with little choice but to fire employees.
"Not only are existing employees losing their jobs, new entrants into the job market are struggling to find opportunities."
Cumulatively, between April and July 2020, 11 million jobs were lost compared to the average employment in 2019-20. But, job losses in the workforce aged less than 40 were much higher, at 19.6 million.
According to Mahesh Vyas, via Business Standard, here are the three key factors that affected the young workers.
1. A slowing economy generates lower demand for labour. Enterprises are expanding lesser than earlier and, therefore, are generating lesser demand for additional labour. Additional demand for labour is usually met by youngsters who join the labour force. But, with the slowdown, the demand for this young new labour force has shrunk. As a result, slowly, the age profile of the workforce is shifting towards the relatively older workers.
2. The younger workforce in an enterprise is less experienced and, therefore, is more easily dispensable. In the initial years, enterprises invest in fresh labour to make them useful. In difficult times, they are less willing to make such an investment. As a result, the axe falls more quickly on youngsters.
3. During the lockdown, enterprises cannot hire and train new recruits easily. This is a new constraint. But, this is a very serious constraint since it is now quite prolonged.