29 May 2020

Handle unemployment post COVID-2020 : Learn digital skills to succeed !

Few months back, India was known as young country because the average age of Indian citizens is 29 years and 50% of the population is below 25 years. For rest of the world India in not only a country where they get large number of consumers but also where they get labour force at low cost. But scenario is changing now. Entire world is going through a tough situation. Many had already lost their job, many corporate houses are shut down and economy of developing like India is stepping towards recession. Digital skills could however help the economy to turn in the right direction.
Image Source : cio.com

It is true that India was facing economy slowdown before the implementation of lockdown, but things are getting worse now.

As per the report published by Centre for Monitoring Indian Economy (CMIE), 33 million men and women had lost their jobs. 27 million people are less than 30 years. Data also shows that 86% are men who had lost their job in last two month. Due to the extension of lockdown the rate of unemployment increased to 25.10% in urban area and 26.7% in rural area. In the month of March, before implementation of lockdown unemployment rate was 8.74%.

As per the theory of economics, there is inverse relationship between Gross Domestic Product (GDP) and unemployment. It stated that increase in employment rate will increase the earning capacity of wages, as a result consumption capacity will increase and similarly overall demand in the market will also increase. And increase in overall market demand boost the gross domestic product (GDP).

Below table is Quarterly (GDP) growth of India, published by Ministry of Statistics and Programme Implementation.

Year/ quarter
Growth Rate
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Source- Statistic Times
                             Table 1.0

This is not the first time when India is facing problems related to inflation rate and unemployment.

As per the report published by State of Working India (SWI), after the implementation of demonetisation in 2016, 5million people were lost their job. (SWI) stated that the unemployment rate was increased around 5% and at the end of 2018 it goes to 6%.

But the situation of COVID-2020 is completely different. Government is trying to minimize the overall damage caused by lockdown and novel virus. Cabinet minister Pyush Goyal asked the industries to start working for their post-covid industrial operations. Companies have to rebuild their business model, they may also have to create their new business channels. On the other hand every individual have to do their investment carefully. Many people are rely on their past savings but it is limited to some extent.

In upcoming interval’s both “fiscal and monetary policies” and “industrial policies” going to play an important role. It is also possible people have to suffer with inflation rate, low wage rate, salary deduction, increment in tax rates and so on and so forth.

In this scenario we all need to learn relevant skills to succeed which are digital skills.  For if there is a problem, there is a solution too.

References : 
·         State of Working India. https://cse.azimpremjiuniversity.edu.in/state-of-working-india/
·         Statistics Times
·         Centre for Monitoring Indian Economy (CMIE), https://www.cmie.com
·         The Economics Time
·         Business Standard

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