Millions of Indians have lost their jobs during the ongoing coronavirus crisis and continue to worry as the pandemic situation in the country seems to have taken a turn for the worst. But even as rising coronavirus cases and intermittent lockdowns threaten India’s employment recovery rate, data on new jobs added in July gives a fresh ray of hope.

A recent report by the Centre For Monitoring India Economy (CMIE) said there has been further improvement In labour conditions in July and there has been a further decline in the unemployment rate. Urban employment opportunities are also on the rise.

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While the gain in July has not been anywhere close to the previous month, the fact that there has been an improvement in job numbers has come as a relief. The Mumbai-based think tank earlier predicted a fall in the employment rate in July.

“But, the net results seem to be headed towards consolidating and making further gains in July albeit lesser than in June,” said the report by Mahesh Vyas, the CEO of CMIE.

Not only has there been a rise in labour participation, but the employment rate also rose to 38.4 per cent in the week ended July 19.

GOOD NEWS FOR URBAN JOB SEEKERS

The rising employment rate in June was a result of large rural participation, but there was little cheer for urban job seekers. It seems the trend is gradually changing as urban employment rate has also improved.

The average employment rate during the first three weeks of July was 37.5 per cent. While the employment rate is still weaker than pre-lockdown levels, urban India has witnessed a surprise recovery in jobs.

In the weekend ended July 19, the urban employment rate recovered to 35.1 per cent — the highest rate after the great fall in April.

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According to CMIE, the rate had peaked to 34.5 per cent in the week ended June 28 but fell to 33.2 per cent in the first week of July. However, it seems now that more jobs are being added in urban India since the past week — something that could bring relief to millions of people who are still looking for a job in a rather tepid market.

CMIE’s Vyas noted that the recovery in urban employment rate is surprising because many reports in the media suggest that towns that were unlocked have again entered a phase of strict restrictions due to rising coronavirus cases.

Not only essential services but service sector jobs have also surged on job portals like LinkedIn and others. While the situation continues to remain uncertain due to the sharp rise in cases, most experts expect a sharp v-shaped recovery in employment if the trend continues.

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