CMIE raises concern for India’s ageing workforce to achieve strong economic recovery
Recent CMIE data shows that the share of those over 40 years of age, which was 56 per cent in 2019-20 increased to 60 per cent by December 2020. Higher job lossses among those below the age of 40 years has resulted in an ageing workforce, which is not favourable for a strong recovery of the Indian economy, according to the Centre for Monitoring Indian Economy (CMIE).
“The share of the relatively young has correspondingly shrunk. This ageing of the workforce again, does not bode well for a stronger recovery in the second half of 2020-21 or in the future,” it said.
Graduates and post-graduates had a 13 per cent share in total employment in 2019-20. Their share in the loss of jobs was 65 per cent. As per the CMIE, out of the 14.7 million jobs lost, 9.5 million were those of graduates and post-graduates.
It noted that job losses were concentrated among the younger workers. All age groups below the age of 40 suffered a fall in employment till December 2020 this year while all age groups above 40 years of age have seen a small gain in employment.
Further, salaried employees who accounted for 21 per cent total employment in 2019-20, accounted for 71 per cent of the total job losses.
Nearly 15 million less people were employed in December 2020, nine months after the lockdown hit people’s livelihood compared to those that were employed before the lockdown in 2019-20.
Those who lost jobs were concentrated in urban regions, among women, among the relatively younger workers, the graduates and post graduates and the salaried employees, the CMIE said.
“It is easy to assume that by December 2020, India’s workforce had not only declined quantitatively but also deteriorated qualitatively. Given this crater India has dug itself into on the employment front, the party rejoicing a quick V-shaped recovery is dancing on thin ice,” it said.