Covid-19: Unemployment means a situation where people cannot work to their full potential; they are employable but cannot find a job. During this pandemic time, many people got a break from their job.
Covid-19: Most of them faced it for a longer time. Many were forced to migrate for their livelihood. During the Lockdown, many restrictions were imposed on the movement of individuals and financial activities and halted trading activities. Many have to go back to agriculture.
The unemployment rate in Urban areas rose during April and June. When restrictions gradually relaxed, the unemployment rate also decreased compared to the levels seen in the April- June quarter of 2020. However, it was comparatively higher than the unemployment rate in the same quarter last year. From PRS Legislative research: Pre-Covid -19 directions suggest that the female unemployment rate has generally been loftier than the male unemployment rate in the government(7.3% vs. 9.8% during the October- December quarter of 2019, respectively). Since the onset of the Covid 19 pandemic, the gap seems to have widened. During the October- December quarter of 2020, the unemployment rate for females was 13.1% compared to 9.5% for males.
The Standing Committee on Labour also noted that the pandemic led to significant scale unemployment for female workers in organized and unorganized sectors. It recommended: increasing government procurement from women-led enterprises, training women in new technologies, providing women with access to capital, and investing in childcare and linked infrastructure. Sometimes, there may be below the legal working age or drop out of the labor force due to various socio-economic reasons, such as completing education. At the same, there may be discouraged workers who, willing but not able to be employed, have ceased to seek work. The Labour Force Participation Rate saw only marginal changes throughout 2019 and 2020. Female LFPR in India is hugely lower than mannish LFPR (16.6% and 56.7%, respectively, in the October- December quarter of 2019).
Measures adopted by the government
The Standing Committee on Labour observed that workers from the informal sector were severely affected due to the pandemic, the seasonality of employment, and the lack of employer and employee relationships in the unorganized sector. The Committee recommended that central and state governments encourage entrepreneurial opportunities, attract investments in traditional manufacturing sectors, develop industrial clusters, strengthen social security measures, maintain a database of workers in the informal sector, and facilitate vocational training.
It took note of the different steps taken by the central government to support workers and handle the challenges and threats posed by the Covid -19 pandemic. Under the Pradhan Mantri Garib Kalyan Yojana, the central government contributed both 12% employer’s share and 12% employer’s share under EPF. Between March and August 2020, an aggregate of Rs.2,567 crore stood credited in EPF narratives of 38.5 lakhs eligible employees through 2.63 lakh establishments.
The Aatmanirbhar Bharat Rozgar Yojana Scheme was launched with effect from October 2020 to incentivize employers for the creation of new career opportunities along with social security help and restoration of loss of employment during the Covid-19 pandemic. Statutory prudent fund assistance of both employers and employees was decreased to 10% each from the existing 12% for all places covered by EPF organization for three months. As of June 30, 2021, Rs 950 crore was spent under ABRY to around 22 lakh beneficiaries. The unemployment miracle beneath the Atal Beemit Vyakti Kalyan Yojana, launched in July 2018, was enhanced from 25% to 50% of the standard earning for insured workers who have lost employment due to Covid-19.
This news was curated by Prittle Prattle News with the help of information provided by PTI.
