1/3 households may run out of resources by next week; Over 2.7 crore in their 20s lost jobs in April
WEB DESK
In a startling revelation the Centre for Monitoring Indian Economy (CMIE) has said that more than one-third of Indian households may run out of resources in another week and face distress without assistance after that, a report in Economic Times said.
The study is based on the impact of lockdown on Indian household income that was released on May 12. It also stated that 84% household has suffered a decrease in monthly income and that more than one-fourth of the country’s working-age population is unemployed. “Across India, 34% of all households report being able to survive for no more than one week without additional assistance,” said study co-authored by CMIE chief economist Kaushik Krishnan.
It also highlighted the urgent need to support households at the lower end of the income spectrum.“These figures suggest that the rapid distribution of in-kind or cash transfers is needed to prevent a sharp increase in malnutrition and severe deprivation,” study said.Data in the study unveiled urban-rural divide, with 65% of urban households reporting enough provisions for a week while only 54% of rural households said they have enough provisions.
Over 27 million (2.7 crore) youngsters in their 20s lost jobs in April, Centre for Monitoring Indian Economy (CMIE) data showed, highlighting the pain inflicted by Covid-19 and the lockdown imposed to combat its spread.The unemployment rate slowed to 24% from 27% in the week ended May 10. Job losses among the vulnerable are likely to raise the proportion of households in debt, CMIE said. “This has serious longterm repercussions. It is during this age that young India builds its career in the hope of a bright future,” said Mahesh Vyas, MD and CEO of economic research house CMIE.It said 33 million men and women in their 30s lost jobs in April and 86% of job losses were among men. According to CMIE, job losses have been registered in every age-group of 5 years.