New Delhi (NVI): A survey has shown that Covid-19 lockdown has caused severe disruption in the economy and labour markets in the States of Bihar, Jharkhand, Odisha and Madhya Pradesh in India.
The impact of nationwide lockdown can be gauged by the fact that a huge number of respondents in the survey had to reduce their food intake and were consuming less food than before.
The survey conducted by Azim Premji University, in collaboration with civil society organisations, covered self-employed, casual, and regular wage/salaried workers.
In Bihar, where 173 (rural) respondents participated in the survey, nearly half (46%) have lost employment. Casual wage workers were more severely affected, eight in ten casual workers lost jobs.
The study also found that more women (55%) lost employment as compared to men (35%). Apart from that, more SC/ST workers (58%) lost employment compared to OBC workers (35%). Nearly seven in ten households had to reduce their food intake during the lockdown.
SC/ST households have been worst affected in terms of food intake, 85% of SC/ST households were consuming less food than before in Bihar. Nearly two in ten vulnerable households did not receive rations, the study finds.
Besides, more than half (56%) of vulnerable households in Bihar did not receive Jan Dhan cash transfer, and four in ten vulnerable households did not receive any cash transfer.
Coming to Jharkhand, which surveyed 458 respondents (rural), nearly six in ten (58%) respondents lost their employment. Casual wage workers more severely affected, 76% reporting loss of employment.
Nine in ten farmers in the state (89%) were not able to harvest or sell their produce at full price. Four in ten salaried workers (42%) were not paid salaries or faced a reduction in salary during the lockdown, the survey found.
Apart from that, for non-agricultural self-employed workers and wage workers, who were still employed, average weekly earnings fell by 2/3 rd (65%).
Nearly eight in ten (77%) households reported reducing their food intake in the state during the lockdown. Casual wage workers more severely affected with nine in ten (93%) casual wage workers reporting reduced food intake.
Besides that, two in ten households did not receive ration during the lockdown. Six in ten vulnerable households did not receive Jan Dhan cash transfer, and more than half (54%) vulnerable households did not receive any cash transfer.
In Odisha, where 503 respondents participated, two-third (67%) respondents reported losing their employment. Urban self-employed were worst-hit with nearly all of them (96%) losing their employment.
Earnings of casual wage workers and non-agricultural self-employed in the state who retained their employment fell by 80%.
Nine in ten farmers were unable to harvest or sell their produce at full price, the survey finds. Eight in ten households reported consuming less food during the lockdown than before.
In addition to this, urban households and migrants have been more severely affected with nine in ten reporting reduction in food intake, the study shows.
Nearly nine in ten households received rations, seven in ten vulnerable households did not receive Jan Dhan cash transfer, and a quarter of vulnerable households did not receive any cash transfer, it said.
Madhya Pradesh, where 525 respondents were taken into accounter in rural areas, almost half of them (48%) lost employment during the lockdown, worst-hit were casual workers, with 65% losing their jobs.
More than seven in ten farmers were unable to harvest or sell their produce at full price. One-fourth of households did not have money to buy even a week’s worth of essentials, SC/ST households were more constrained, compared to OBC and General category households.
Other than that, seven in ten households were consuming less food than before during the lockdown, 45% of all vulnerable households did not receive Jan Dhan cash transfer, and nearly four out of ten (36%) vulnerable households did not receive any cash transfer.
Overall, the study finds that livelihoods have been devastated at unprecedented levels during the lockdown. Experts who were involved in the study say that the recovery from this tough situation could be slow and very painful.
COVID-19 and the subsequent lockdown since March 24 has taken a toll on the Indian economy, and particularly on vulnerable informal and migrant workers and their families. The survey suggests that immediate as well as medium to long term, comprehensive policy measures are needed to counter these effects and chart the path to economic recovery.
The team which conducted the study, suggests the following measures to ameliorate the conditions of those most affected by the crisis:
- Universalisation of the PDS to expand its reach and implementation of expanded rations for at least the next six months.
- Cash transfers equal to at least Rs. 7000 per month for two months. From a macroeconomic perspective as well, larger transfers are needed to bring back demand in the economy.
- Proactive steps like the expansion of MGNREGA, introduction of urban employment guarantee, and investment in universal basic services are needed.
Azim Premji University has conducted phone surveys of 5000 workers across 12 states of India, to gauge the impact of the COVID-19 lockdown on employment, livelihoods, and access to government relief schemes.
