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81% received full wages in first wave of Covid-19 pandemic: Survey

70% of firms didn't cut jobs; in fact, health sector increased employment

Topics
workers | Wages | Employment

Nikunj Ohri & Indivjal Dhasmana  |  New Delhi 

welfare, workers, construction, daily wager

An overwhelming 81 per cent of in nine organised non-farm sectors received full even as only about 27 per cent of establishments cut jobs during the Covid-induced nationwide lockdown during March 25 to June 30, 2020, showed the first revamped quarterly survey (QES).

Besides, 69.5 per cent of establishments had hired as many hands as on July 1, 2020, as they had on March 25, when the lockdown was first announced, showed the survey released on Monday. And, around four per cent establishments hired more during this period.

The survey revealed that were reduced for 16 per cent of and around three per cent were denied any wage during the period.

Aditi Nayar, chief economist at ICRA, said: “The combination of loss of and reduced or no during the lockdown period, exacerbated by the overall uncertainty, underpinned the fall in consumption during the first quarter of financial year 2020-21 (Q1FY21).” Private final consumption expenditure (PFCE), which denotes demand in the economy, declined 26 per cent during this period, according to official data on the gross domestic product.

Sectors

In the health and financial sectors, more than 90 per cent received full wages. However, in the construction sector 27 per cent had to accept reduced wages and seven per cent did not receive any pay.

chart
The highest number of establishments that were operational during nationwide lockdown was in the health sector at 88.9 per cent, followed by the financial services sector (71.6 per cent). The sector that saw the highest number of establishments that were not operational during the period was education at 76.5 per cent, followed by the accommodation and restaurants sector (72 per cent) and trade sector (71.5 per cent). in the financial and education sectors remained largely unaffected by the nationwide lockdown as 84.5 per cent of establishments reported no change in jobs given. And despite a majority of establishments not being operational, 78.4 per cent educational establishments did not reduce employment.

On the other hand, decreased employment during the nationwide lockdown was relatively higher for the manufacturing, construction, accommodation and restaurants sectors. As many as 38.1 per cent establishments in manufacturing, 34.5 per cent in construction, and 34.3 per cent establishments in accommodation and restaurants cut jobs over this period. Meanwhile, the health sector generated seven per cent more jobs during this period.

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First Published: Mon, September 27 2021. 20:20 IST
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