(Image source from: asia.nikkei.com)

India is currently in its third phase of lockdown and with that, the unemployment rate in the country is at a record high of 27.1%. The report was submitted by Centre for Monitoring the Indian Economy (CMIE).

According to the new data, India’s unemployment figures are four times more than that of US.

While India doesn’t disclose the official data for its unemployment, the one shared by CMIE is considered a close second. The country has on a lockdown since March 25 to further contain the spread of the virus which has led to mass layoffs and cut offs from the jobs.

The unemployment rate was 8.7% in March which then spiked to 23.5% in April and has since then increased consistently. The main reason behind the lockdown is primarily because of the lockdown which has brought the businesses and industries to a complete standstill.

The desperate migrant workers were found fleeing the spot and walking back to their homes during the time of crisis. The informal jobs, which is responsible for employing over 90% of the population was the worst hit were the construction sites were closed down indefinitely and the public transport were banned.

But, these curfews and lockdowns that have impacted uncertainty over the looming threat on the country, the same has not spared some of the permanent jobs either.

Several of the renowned companies from various sectors of media, aviation, retail, hospitality, automobiles have conducted massive layoffs. Studies have also found that a number of small and medium businesses are also likely going to shut down.

Not just that, reports from CMIE has also suggested that the imposed lockdown has had a devastating impact on the organised economy of the country.

Out of the 122 million people who are out of jobs and business, 91.3 million include small traders and labourers. Aside from that, 17.8 million salaried employees and 18.2 million self employed have also lost their source of income.

Agriculture has seen growths in the employment, mainly because of the migrant workers who have returned to their home are not seeking employment on the farms around their house. This has bucked up the employment in this sector in the month of April and May.

The experts have time and time warned that with the prolonged extension of the lockdown, the economic costs are going to get higher.

"It is imperative that India weighs the economic cost of the lockdown on its people," Mahesh Vyas, CEO of CMIE told to BBC.

With the constant pressure on the government, they have started to ease some of the restrictions in some places across the country. These are mainly done in the areas with no or little infection. The strict curfews are still prevalent in the red zones.

“Zoning is a good starting point but, it cannot help for too long. Regions cannot work in silos. People, goods and services need mobility. Supply chains need to start working before businesses run dry of finances,” Vyas further added.

The third phase of the lockdown imposed by the Central Government is set to end on May 17. Some of the states have further prolonged the lockdown with no indication as to when the same could be lifted.

By Somapika Dutta