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2020 Lockdown Led to Significant Job Losses: Ministry Data

Recently, the Ministry of Labour and Employment unveiled data regarding job losses throughout the Covid-19 lockdown period of 2020. The findings were based on the All India Quarterly Establishment-based Employment Survey (AQEES), highlighting the employment landscape across key sectors in the country.

About AQEES

Commissioned by the Labour Bureau, the AQEES seeks to provide regular quarterly updates about employment and corresponding variables for establishments in both organised and unorganised segments across nine selected sectors. These include Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation and Restaurants, IT/BPO, and Financial Service Activities.

Components of AQEES

The AQEES comprises two primary components: the Quarterly Employment Survey (QES) and the Area Frame Establishment Survey (AFES). The QES provides employment estimates for establishments employing ten or more workers, while the AFES covers the unorganised segment through a sample survey targeting establishments with fewer than ten workers.

Job Loss Impact Across Sectors

Notably, the manufacturing sector endured significant job losses during the lockdown period, recording a reduction of 14.2 lakh jobs. Similarly, the financial services sector observed a downturn with a job loss of 0.4 lakh and the IT/BPOs sector lost 1 lakh jobs. Other affected sectors include construction, trade, and education which registered job losses of 1 lakh, 1.8 lakh, and 2.8 lakh, respectively.

Gender-Based Job Losses

The data also revealed gender-based distinctions in job losses. Female workers faced a 7.44% job loss among the nine key sectors, with noticeable reductions within manufacturing, construction, and trade sectors. According to the data, male workers experienced a 7.48% job loss during the pre and post-lockdown timeframe.

Recent Findings

The latest quarterly employment survey disclosed an upturn in employment within the nine key sectors, marking an increase to 3.08 crore in April-June 2021 from 2.37 crore in 2013-14. However, pandemic effects still affected the organised non-farm segment which saw a decrease in 27% of its establishments.

Employee Wage Status During Lockdown

During the Covid-induced lockdown, most workers managed to retain their full wages. The data shows that 81% of workers received full wages, while 16% were given reduced wages, and a mere 3% were denied any wages at all.

Significance of the Survey

The data gathered from these surveys can help the government understand the critical issues surrounding employment in India. This information can then be used to frame evidence-based National Employment Policy. Recognising this significance, the ministry has launched two more surveys: All-India Survey of Migrant Workers and All-India Survey on Domestic Workers.

Related Government Initiatives

In response to the employment crisis, several initiatives have been launched by the government, including the Mahatma Gandhi National Rural Employment Guarantee Scheme, the Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission, and the Atma Nirbhar Bharat Rojgar Yojana as part of the greater Atma Nirbhar Bharat package 3.0.

Last Modified: February 14, 2024

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