10,607.3555.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

21 million people got jobs in May due to improved labour market conditions: CMIE

As per the report, the labour participation rate improved from 35.6% to 38.2% and the employment rate improved from 27.2% to 29.2% in May. “The total number of people employed increased by 21 million during May 2020, an increase of 7.5% over April,” CMIE said.

, ET Bureau|
Last Updated: Jun 02, 2020, 11.19 PM IST
0Comments
Getty Images
Jobs2.Thinkstock
NEW DELHI: At least 21 million people became employed after the nationwide lockdown was partially lifted in May, independent think tank Centre for Monitoring Indian Economy said, although it was restricted to small traders, wage labourers and the self-employed.

The salaried class did not see any increase in jobs, it said. Employment data for the last week of May showed significant improvement across various parameters.

The unemployment rate in the last week of May fell to its lowest since the lockdown to 20.2%, while the labour participation rate went up to 38.7% and the employment rate rose to its highest since the lockdown to 30.9%, CMIE said. The unemployment rate for the entire month, however, stood at 23.5%, the same as in April, while the labour participation rate improved to 38.2% from 35.6% and the employment rate improved to 29.2% from 27.2%.

19

Of the 21 million jobs added last month, 14.4 million jobs were added in the category of small traders and wage labourers, an increase of 39%. These wage segments account for about a third of the total employed population.

In April, 71% of them had lost jobs, CMIE said in its weekly report on Tuesday.According to the report, 5.5 million jobs returned in the self-employed or businessperson category, an increase of 9.3% in May. Employment in the farm sector grew by 1.2%, with 1.4 million added in May compared to April. CMIE said the only segment that did not see any increase in jobs last month was that of salaried employees.

“The number of salaried jobs declined very marginally from 68.4 million in April to 68.3 million in May,” it said. There were around 86 million salaried workers in 2019-20.

“Salaried jobs will increase in a meaningful sense only when investments increase. This is a distant dream,” it said.

Compared to the average workforce of 404 million in 2019-20, employment in May was 303 million, which means over a 100 million people were still out of jobs.

“Nevertheless, this is an improvement over the situation in April when employment had fallen to 282 million, implying a loss of nearly 122 million compared to the average employment in 2019-20,” it said.

CMIE expects further improvement in labour statistics in the coming months with further unlocking of the economy. “However, most of the initial improvements will be of poor quality jobs,” it said.

Also Read

IT professionals crowd the job street

Airbus shedding 15,000 jobs, mostly in Europe

Looking for a job in one of the worst job markets in history? Network virtually, be open to alternate career paths

IBM has 500 job openings in India

India to launch new rural job programme for migrants

In times of Covid, diamond jobs are not forever

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

    Other useful Links


    Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service