Earnings halved, many informal workers yet to get jobs back: Azim Premji Uni survey

One-fifth of those who were employed before the lockdown is still out of work, according to a survey by Azim Premji University
Migrant workers travelling home during the pandemic
Migrant workers travelling home during the pandemic
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Over two-thirds of people who were employed in February 2020 lost their jobs during the COVID-19 lockdown, a survey conducted across 12 states has found. A second round of the same study found that 20% of them are still out of work, six months later. This second leg of the survey was done by Azim Premji University in collaboration with six civil society organisations between October and December last year.

The first round of the survey was done in April and May 2020 and 5,000 respondents from the informal sector and vulnerable households in Karnataka, Andhra Pradesh, Telangana, Bihar, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Gujarat, Delhi, Pune and West Bengal were interviewed. Self-employed, casual and regular wage/salaried workers have been covered in the study. In the second round, 2,778 of the respondents were re-interviewed.

The first round of the survey had revealed that while 66% of workers lost their jobs, the earnings also dropped by 64%. Seventy-seven per cent of the households were consuming less food than before, and 47% did not have money for even a week’s worth of essentials. While 77% of vulnerable households received rations, 49% received cash transfers. The situation was worse in urban areas when it came to respondents losing jobs, and more women casual workers, as well as self-employed women, lost jobs than men in urban areas.

Now, the second round of the survey has found that the recovery is yet to happen even six months after the lockdown was lifted. For instance, “out of every 100 workers, only 26 remained unaffected by the lockdown. Fifty-five managed to recover their lost jobs but 15 had still not registered any recovery. Five had lost jobs after the lockdown.”

Recovery has been harder for women workers compared to men – 53% have recovered jobs as opposed to 57% men. Earnings of a large section of the workers overall have been half of what they earned in the pre-lockdown period.

Further, while nine out of 10 households had cut back on food consumption during the lockdown, only one-third were able to consume food at pre-lockdown levels after it was lifted. “Urban households are worse off, with 28% reporting that food consumption was still at lockdown levels as against 15% of rural households,” the survey said.

Overall, among the 12 states surveyed, 30% of eligible Pradhan Mantri Jan Dhan Yojana account holders did not receive cash transfers, and around three-fourth of eligible Below Poverty Line (BPL) households did not receive free ration in the month before the survey

How the southern states fared

The first phase of the survey had the following findings from the southern states of Karnataka, Andhra Pradesh and Telangana.

In Karnataka, 72% of people reported a loss of employment during the lockdown: three out of four respondents in urban areas, and eight out of 10 non-agricultural casual workers and those self-employed in non-agricultural work. While earnings fell by 67%, 44% of salaried wage workers reported being paid reduced salaries or none at all during the lockdown.

“Compared to general (49%) and OBC (53%) households, a higher number of SC/ST households (63%) were without enough money to buy more than a week's worth of essential items,” the survey found.

When it came to relief measures, 59% migrant workers in urban areas of Karnataka found themselves at a loss as they did not have a ration card. Seventy-five per cent vulnerable households didn’t have Jan Dhan accounts and only 55% of the account holders received cash. Less than three in 10 vulnerable households in urban areas received at least one cash transfer.

“Government is neither giving us jobs nor any support money. Our MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) wages are due and the government has not even paid that yet,” a casual worker from Karnataka was quoted as saying.

In Andhra Pradesh, 81% of salaried workers lost jobs, and those in rural areas were worst-hit, with 59% of them losing work. Sixty-three per cent of vulnerable households in the state lost employment during the lockdown. As compared to men (56%), more women (63%) found themselves unemployed. While migrant workers were severely affected here as well, with 64% reporting reducing intake of food to survive, 76% of OBC households reported the same. Forty-three per cent of the respondents said that they did not receive a single cash transfer in relief measures.

In Telangana, a positive finding was that 98% of the vulnerable households surveyed said they received ration during the lockdown. Compared to Karnataka (72%) and Andhra Pradesh (57%), a lower percentage of people seem to have lost jobs in the same time period (37%). Here too though, OBC households were worst-affected when it came to the reduction in food intake, with 71% lessening it.

Economy yet to recover

The survey also said that the economy is yet to recover after the COVID-19 shock and induced lockdown.

“Our findings suggest that a continued, expanded allocation for MGNREGA, as well as the introduction of an urban employment scheme in the upcoming budget, are crucial for addressing this livelihood crisis. Further, given the weakness in food and earnings recovery, there is an urgent need to expand the scope of the current public distribution system (PDS) alongside an adequate security net for those who have suffered the most during this crisis,” a media release said the statement from the Azim Premji University.

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