The effect of COVID-19 on unemployment. India’s crisis in the job market is more serious than it seems. The rate of unemployment in the youth is actively plunging up and its impact is on the general economy and livelihood of the youth as a majority of them with professional or academic degrees find it difficult to pursue employment. Unemployment rates have steadily plunged in the year 2020 amidst the Covid-19 outbreak and lockdown crisis as the country struggled to tackle the deadly pandemic.
Official statistics
According to the reports of the CMEI, Centre for monitoring the Indian economy, the unemployment rate in the Indian youth had crept up to nearly 8% in December 2020.
Although most nations of the world saw unemployment, India and its youth saw unemployment and the economy were impacted worse than neighbouring nations like Pakistan and Bangladesh. In 2019, the estimated youth unemployment rate was 23.01%.
Huge Gap
The presence of a huge gap between labour engrossment and labour supply has been one of the primary causes of unemployment among the youth of India. Back until now, this steadfast worrisome issue was not noticed because the official rates of unemployment were quite low however also the low rates were also accounted for how unemployment and employment were measured and defined in India. Jaitley claimed, however, amidst the government’s attempts at challenging the accuracy of the leaked unemployment rates from the NSSO reports that the creation of jobs has not kept pace with the masses of those seeking employment.
Social conflict
The unemployment issue however can create another problem besides affecting the nation’s economy. It can create social conflict among the youth of India as they attain degrees and attend colleges and still are unable to pursue jobs. The expanding population and a higher literacy rate but inability to attain secure jobs will and are creating problems often related to health and mental well being as the youth are on high bounds as to how to meet their livelihood.