COVID Files: Recession and Unemployment

“The Minimum wage is zero” said by Mr. Kofi Annan which explain the pragmatic situation. Today's top business news: Unemployment rate in May rose to 27.11%, stocks soar as India begins to unlock, businesses run out of cash, that says the headlines of Hindustan Times dated 01-06-2020. For India, unemployment has been a chronic disease haunting the nation. 

This time the threat is huge to leave people redundant. We all know the great struggle that daily wage workers are undergoing. Due to unoccupancy they tend to make their ways to their hometown in search of better chance of survival. Even the big business houses have faced a setback, leading to salary cuts, unemployment and helplessness.

It sums up to “disease of rich has paved way to graves of the poor”. Pro-Urbanisation has taken 180 degree turn and now it has changed to ruralisation. Now, I, as a law student urge the nation to take responsibility. 

GOVERNMENT POLICIES 

Seeing these extremities, Government have taken various steps to keep the unemployment rates low: -

• A special research team is being formed to do a quick and continuous assessment of skills demand, based on which training will be imparted, an official of the skills development ministry told ET.
• A large and comprehensive re-skilling programme for those workers whose jobs may be at risk, including informal workers, workers in malls, cinemas that may not open for some more time, is to be prepared for training them to work in other sectors, such as ecommerce.
• About two-thirds of population will be covered under the Pradhan Mantri Garib Kalyan Anna Yojana (Food scheme)
• Everyone under this scheme will get 5 kg of wheat and rice for free in addition to the current 5 kg allocation for the next 3 months
• Farmers currently receive INR 6,000/- every year through the PM-KISAN scheme (minimum income support scheme) in three equal instalments. The government will now be giving the first instalment upfront for fiscal year starting April 2020. About 86.9 million farmers are expected to benefit from this immediately.
• MNREGA workers: Wage increase from INR 182/- to INR 202/-. Such increase will benefit 50 million families. The wage increase will amount into an additional income of INR 2,000/- per worker.
• 30 million senior citizens, widows, disabled to get one-time ex-gratia amount of INR 1,000 in two instalments over the next 3 months.
• 200 million-woman Jan Dhan account holders to be given ex-gratia amount of INR 500 per month for the next 3 months, to run affairs of their household.

FUTURE OPPORTUNITIES

As every coin have two sides, COVID recession will bring some opportunities in the future. As a result of this pandemic, America has increased the tariff policies to 25%, which has led many techno-based companies to shift their manufacturing concern to different countries.

We could provide these companies a base which will increase the level of employment leading to increased number of job opportunity and decrease in inflation. Moreover, increased Gross Domestic Product. 

Even Apple has started construction of their manufacturing concern in the southern part of our nation. Even Japanese companies have given a thought about the same.  

This brings a grin in these gloomy times. As our nation is labour oriented, these are some good news which will provide a golden opportunity to both skilled and unskilled labour all around the country. 

What we all can take from this scenario is that we have no choice else to live through this global emergence. We need to keep in mind that worst experiences teach the best lessons. You can reach the law community on our networking platform to share what lesson you learnt from this pandemic experience.

‍

- NEXT BLOG IN THE SERIES -

Law Community, Opening New Horizons For You!