Unemployment Crisis

Goldman Sachs recently expects  the global economy to sink into recession in 2020, a global recession is imminent this time round, and prophecises that the Covid-19 pandemic take the global gross domestic product (GDP) to a negative 1.8 percent in 2020.For India,it has lowered its real GDP forecast to 1.6 percent for Financial Year 2021, from 3.3 percent earlier.This,however,is still much higher than the US,which it now sees contracting to-6.2percentin2020(from-3.7percentearlier).

Business information company CMIE’s monthly jobs data showed that unemployment rate was already a worrying 8.7% in March, the highest on record since it began its survey over three years ago. More troubling is that, when the lockdown was imposed in the last week of March, unemployment surged to 23.8%. This may be an underestimate as the survey, based on households, is likely to have missed many economic migrants, who left cities in misery when their work places no longer needed them.Separately, news emerging from industry suggests that some manufacturers have begun to hold back payments to their suppliers. This is likely to ripple out and put more stress on jobs.
Around 400 million Indians are at risk of slipping into poverty because of the“strin-gent” nationwide lockdown implemented to control the spread of the coronavirus disease(Covid-19), the International Labour Organization (ILO) said in arecent-ly released report. “In India, Nigeria and Brazil, the number of workers in the informal economy affected by the lockdown and other containment measures is substantial.In India,with a share of almost 90 percent of people work-ing in the informal economy,about 400 million workers are at risk of falling deeper into poverty during the crisis,” the ILO said in its report ‘Covid-19 and the world of work’.The ILO noted that lock-downs and related business dis-ruptions have had sudden and drastic impact on workers. According to official estimates,500,000-600,000 workers walked miles to reach their villages.Hundreds of thou-sands ofmigrant workers are still living in shelter homes setup by various state gov-ernments,while the rest have been quar-antined before they are allowed to meet their families.According to the ILO,around two bil-lion people work informally around the globe,most of them in emerging and devel-oping countries.According to this estimate,India accounts for 20 percent of all the infor-mal workers in the world.

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Milan Tomic

Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.

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