COVID-19 Unemployment Leading To Ageing Indian Workforce, CMIE Reports

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The latest data shared by the CMIE aka Centre for Monitoring Indian Economy has highlighted a huge red flag.

Due to the devastating effect of the COVID-19 pandemic, in the employment scenario of India has been witnessing a surge in job losses among individuals below the age bracket of 40 – this is something that has resulted in the ageing of the Indian workforce in total. Therefore, it is not considered a healthy sign for the country’s economic revival in H2 of the current financial year.

In its weekly analysis, CMIE pointed that job losses have been observed to be concentrated in urban regions, especially among women, the relatively entry-level or young workers, graduates, postgraduates and salaried employees as well.


According to the latest data acquired by the body, India’s workforce aged in 2020-21 during the lockdown. The share of those who are over 40 years of age increased to 60% by December 2020 when compared to 56% in 2019-20. While the share of the young workforce has subsequently shrunk down. Thus, it is a huge red flag for India’s employment scenario.

To break it down, CMIE reported that job losses were seen to be higher among young workers with all age groups that come below the age of 40 suffering a sharp fall in employment till the month of December 2020.

Now, within the same, those who are in their 20s accounted for 80% of the job losses as of December 2020 whereas those who are in their 30s accounted for 48% of job lost till the same time period.

COVID-19 Unemployment: Young Urban Workforce Suffered The Worst

According to CMIE, urban India accounted for a total of 32% of the country’s entire employment in 2019-20. However, observing how there has been a 34% loss of employment in urban India in 2020-21 till December 2020, it does not bode very well for the economic recovery process of the nation.

CMIE further reported that women who account for a mere 11% in the total employment scenario of India accounted for 52% of the job losses, which is something that is highly disappointing.


CMIE stated that much of the country’s growth acceleration relies on the increased and active participation of women in India’s workforce. Thus the COVID-19 is to be blamed for disproportionately hampering the share of women workforce in the country which will now lead to slow economic growth.

Lastly, CMIE analysis said that the total employment in India fell by a whopping 14.7 million by the end of December 2020 when compared to the time period 2019-20. Along with this, the body also reported that employment shrunk by 18.4% in Q1 2021 when the economy took a dive by 23.9%, next when employment contracted by 2.6% in Q2 2021 the economy was down by 7.7% and shrank further by 2.8% in Q3 2021.

In conclusion, the CMIE said that December 2020 not only saw a quantitative reduction in India’s workforce but also a qualitative one as well. We will keep you updated on all future developments. Until then, stay tuned.


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