27 million youth in age group of 20-30 years lost jobs in April: CMIE

CMIE on Tuesday said 27 million youth in the age group of 20-30 years lost their jobs in April.

Centre for Monitoring Indian Economy (CMIE) on Tuesday said 27 million youth in the age group of 20-30 years lost their jobs in April 2020 following a nationwide lockdown to prevent the spread of the novel coronavirus.

According to the CMIE weekly report, the unemployment rate fell from 27.1%to 24% for the week ended May 10 while the labour participation rate rose from 36.2% to 37.6% as the government opens up industries in a staggered manner. Employment rate also rose from 26.4%to 28.6%.

Data from CMIE’s Consumer Pyramids Household Survey shows youngsters in the age group 20-24 years accounted for 11% of those who lost jobs while they constituted 8.5% to the total employed persons in the country in 2019-20.

“34.2 million of these young men and women were working in 2019-20. In April 2020 their numbers were down to 20.9 million,” it said.

According to CMIE, another 14 million jobs were lost in the age-group 25-29 years. “This loss again, was disproportionately high as this group accounted for 11.1% of total employment in 2019-20 but it accounted for 11.5% of the job losses.” it added.

CMIE is of the view that job loss of 27 million youngsters in their 20s will have serious long-term repercussions. “They will have to compete with the new cohorts joining the labour force after them, for fewer jobs,” it said, adding young India will not be able to build the savings it will require later in life.

Further, 33 million men and women in their 30s lost jobs in April out of which 86% of the job losses were among men, it said.

According to CMIE, job losses among the young population would have implications on savings. “While households may well conserve cash during these times, the loss of jobs among the young deprives households of the extra cash that is mostly saved for either buying a house or durables or for retirement,” it said, adding that this loss of savings will have long term implications.

Source: The Economic Times

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