Last Updated: May 4, 2021, 2330 hrs
The Covid-19 Tsunami has proved to be a tough time for people in various sectors as the unemployment rates have rose to a four-month high of nearly 8 percent in April. The unemployment level rose to 7.97 percent in April from 6.5 percent in March, with more than seven million jobs lost last month, according to data from the Centre for Monitoring Indian Economy Pvt, (CMIE) a private research firm.
As states are registering a surge in infections, the imposing and extending of lockdowns is taking place to curb the virus and break the chain of transmission. CMIE Managing Director Mahesh Vyas said the job availability has been impacted most likely due to lockdowns. “Since the virus is still quite intense and we are stressed on the medical health-services front, it’s likely that the situation will remain tense in May as well,” the Bloomberg report quoted Vyas.
According to CMIE data, the number of employees, both salaried and non-salaried, fell from 398.14 million in March to 390.79 million in April, in the third straight month of falling jobs.
In the absence of real-time employment data from the government, most economists rely on the CMIE data, as it reports joblessness being more acute in urban areas as laborers return to their villages.
Meanwhile, the second wave can also cause the collapse of the domestic aviation sector, as per the aviation consultancy firm CAPA India.
‘Key Trends in Indian Aviation in FY2022: Impact of Second Wave’ shows the huge impact on the industry It is predicted that the industry will report serious losses in FY2022, similar in scale to that in FY2021, with downside risk in the event of a protracted second wave, or the emergence of a third wave. Many Indian airlines will struggle to recover from two consecutive years of such massive losses, it noted.
“Consolidation is inevitable and will be strategic in nature. It could result in a 2-3 airline system in the near to medium term,” the report mentioned. IndiGo among these will be the only carrier to emerge from the crisis significantly stronger because of its very strong balance sheet based on reports.
Also CAPA India in its latest report, it said the situation will also accelerate consolidation in the industry, resulting in two to three airlines operating in the domestic sector, down from six major airlines and three regional carriers that currently operate in the space.