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

An overwhelming 81 per cent of workers in nine organised non-farm sectors received full wages 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 employment 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 wages were reduced for 16 per cent of workers and around three per cent were denied any wage during the period.

Aditi Nayar, chief economist at ICRA, said: “The combination of loss of employment and reduced or no wages 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.

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.