Impact of COVID-19 Pandemic on Informal Labour Market in India

Abstract

Listen

Translate article

AbstractThe majority of labour forces are employed in un-organized sectors, are poverty-stricken, and vulnerable in the Indian labour market. A large number of workers migrate from less developed areas of the country to industrial areas and megacities. Although the COVID-19 pandemic affected all sections of people throughout the globe, informal workers both in un-organized sectors and organized sectors in India were hit the hardest. They have become jobless, lost their income, exhausted their savings, and aggravated their poverty. Reverse migration of workers has increased the excess burden on the rural economy. The government has initiated fiscal policy and monetary policy measures to overcome the crisis posed by the pandemic. Public expenditure was increased by 10 percent of GDP for boosting activities in different sectors of the pandemic-stricken economy. The RBI reduced interest rates for the smooth functioning of the system. However, informal workers are least benefitted from these policy initiatives. The future of informal workers in India remains totally uncertain as the growth rate reached the lowest level. The scholarly can assess the overall impact of the pandemic only for the time being.KeywordsEconomic slowdownInformal workersFiscal policyMigrant workersMSMEs