Essay on “Impact of Covid 19 on working class of India”

Essay on “Impact of Covid 19 on working class of India”

COVID-19 will have far-reaching impacts on labour market outcomes. Beyond the urgent concerns about the health of workers and their families, the virus and the subsequent economic shocks will impact the world of work across three key dimensions: 1) The quantity of jobs (both unemployment and underemployment); 2) The quality of work (e.g. wages and access to social protection); and 3) Effects on specific groups who are more vulnerable to adverse labour market outcomes.

      Underemployment is also expected to increase on a large scale. As witnessed in previous crises, the shock to labour demand is likely to translate into significant downward adjustments to wages and working hours. While self-employment does not typically react to economic downturns, it acts as a “default” option for survival or maintaining income – often in the informal economy. For this reason, informal employment tends to increase during crises. However, the current limitations on the movement of people and goods may restrict this type of coping mechanism.

        Working poverty is also likely to increase significantly. The strain on incomes resulting from the decline in economic activity will devastate workers close to or below the poverty line. The growth impacts of the virus used for the unemployment estimates above suggest an additional 8.8 million people in working poverty around the world than originally estimated (i.e. an overall decline of 5.2 million working poor in 2020 compared to a decline of 14 million estimated pre-COVID-19). Under the mid and high scenarios, there will be between 20.1 million and 35.0 million more people in working poverty than before the pre-COVID-19 estimate for 2020.

       Over eight in 10 urban working professionals in India claim the novel coronavirus has large or moderate impact on their business and declining sales is expected to be the greatest commercial woe in the future, a small-yet-significant survey said on Thursday. Baby Boomers (born between 1944 and 1964) were more likely to feel the effect of COVID-19 disease on their business compared to the other age groups, according to the survey of 251 senior business professionals by YouGov, an Internet-based market research and data analytics firm.

      The COVID-19 crisis has the potential to push around 40 crore informal sector workers in India deeper into poverty, with the lockdown and other containment measures affecting jobs and earnings, an International Labour Organisation (ILO) report said on Tuesday. India has imposed a three-week lockdown till April 14 to contain the pandemic. As per ILO, India is among the countries less equipped to handle the situation.

“COVID-19 is already affecting tens of millions of informal workers. In India, Nigeria and Brazil, the number of workers in the informal economy affected by the lockdown and other containment measures is substantial,” the ILO report released in Geneva said.

      In India, with a share of almost 90 per cent of people working in the informal economy, about 400 million workers in the informal economy are at risk of falling deeper into poverty during the crisis.

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