Five months later, there is a decline in employment for the first time in October. The lockdown was imposed across the country in March to prevent infection with the Corona epidemic. After that there was a decline in employment in October for the first time after recovery from May. Last month, the number of working people declined by 5.5 lakhs. This is revealed by data released by the Center for Monitoring Indian Economy (CMIE).
Bad picture despite the festive month
The three major ratios of the labor market, Labor Force Participation Rate (LPR), Employment Rate and Employment Rate, showed a bad trend till the end of the third week of October. Although October is the festive month, it is the harvesting month of Kharif crops and elections are in some states, yet these factories could not present a good picture about employment.
Hikes from May to September
There was an increase in employment from the first May to October of September. Employment increased to 3.16 crore in May, 6.32 crore in June, 1.53 crore in July. This increase was till September. After this it declined in October. Although the decline in employment is very low, but it matters because it has come at a time when the demand for employment has surprised the market. In October, the number of unemployed has increased by about 12 million who need work.
2% less participation than before lockdown
Labor participation rate (labor participation rate) fell 7.8 percent in April. It then recovered to 5.04 percent between May and July. There was no significant recovery in the next three months after July. When compared to the imposition of lockdown, the labor participation rate of about two percent is low at this time.
LPR stood at 40.66 percent in October. This was the same in September, but the unemployment rate in October increased by 6.7 percent in October as compared to September. In October, the unemployment rate increased at 7 percent. The employment rate was also worrying in October. It fell to 37.8 per cent as compared to 38 per cent in September. CMIE has explained that this is a situation stemming from passive LPR and rising unemployment rate.
Improvement seen in the fourth week of October
In the fourth week of October, the situation showed some improvement and LPR showed an increase. Apart from this, the employment rate was better in the week ending on 1 November. The PMI report released by the IHS Market on the services and construction sector also indicates that employment has declined despite the increase in economic activity in October.