COVID-19 Pandemic, Lockdown and the Indian Labour Market: Evidence from Periodic Labour Force Survey 2018–2019

Vasavi Bhatt,Ajay Sharma,Shweta Bahl

doi:10.1177/00194662211013237

Abstract

Using the PLFS 2018-19, this study intends to analyse current labour market from the perspective of COVID-19 pandemic, subsequent lockdown and the expected slowdown in the Indian economy. We explore the questions such as: What share of workers will be able to work from home? Which are the vulnerable groups of workers in the labour market, that are likely to be the most affected? We show that 18-19% of non-farm workers are engaged in work from home (WFH) occupations, with women and urban areas having larger share of these workers. We find that 32 (10) % of non-farm workers in rural (urban) areas are vulnerable and face higher risk of job loss during a lockdown.JEL Codes: J10, J21, J63, J80, D69

Highlights

COVID-19 has overpowered the ability to earn a living for many people, rendering the world economy to a standstill, and bringing a myriad of social and economic changes
This study attempts to provide a timely analysis of the labour market with a focus on identifying the effect of COVID-19 pandemic induced lockdown and the subsequent slowdown
Using the Periodic Labour Force Survey (PLFS) 2018– 2019, we identify various groups of workers in the labour market who would be largely unaffected, those who would be exposed to higher risk and those who would be the most vulnerable set of workers in the current scenario

Summary

Introduction

COVID-19 has overpowered the ability to earn a living for many people, rendering the world economy to a standstill, and bringing a myriad of social and economic changes. The Indian Economic Journal reason could be that the lockdown has closed many businesses either temporarily or permanently eventually exposing many workers to job loss. Against this background, this study intends to explore, how will the pandemic and the slowdown affect the Indian labour market? On 3 May 2020, the government partially opened up the economic activities, suggesting workers to continue working from home to ensure social distancing. This kind of work flexibility is not ubiquitous across all jobs and the plight of migrants is conspicuous through the media.

Conceptual Framework and Related Literature

Data and Methodology

Main Results

Conclusion

Work Context