BackMost casual workers in Delhi-NCR see wages decline in past 2 weeks
As many as 84% of those employed, most of them in the informal sector, suffer loss of pay, finds NCAERNearly 75% of casual workers said their wages had been hit ‘very much’ due to the lockdown
PremiumNEW DELHI : A staggering 84% of people in Delhi and its suburbs, most of them part of the region’s vast informal economy, have suffered wage losses in the past two weeks, a survey by the National Council of Applied Economic Research (NCAER) found.
Fifty-five percent of the respondents reported a “severe" loss of income because of the lockdown to stem the spread of the coronavirus outbreak, while 29% said their income has fallen “somewhat", the survey conducted between 3 and 6 April found. Respondents reported a reduction in their income or wages in the two weeks prior to the survey.
“Only 15.5% of households reported that the coronavirus outbreak has not reduced their income or wages," the NCAER survey said.
While the government has promised to help the poor with cash assistance, there is concern that disbursements may not be enough to maintain social order if the lockdown is extended beyond 14 April. In many places, migrant workers have come out on the streets to raise their voice about lack of food and water, and demanded they be allowed to return home.
“We believe that the income and wage loss impact shown in the findings should not be seen just as a short-term impact. The income crisis during the pandemic is a mid-term phenomenon and the government should step in to support the vulnerable section of society," said Shantanu Pramanik, the lead author of the survey and a senior fellow at NCAER.
While the worst hit among the respondents were casual workers and small businesses, salaried workers and farmers were better off. As many as 74.5% of casual workers reported that their income and wages had suffered “very much"; the corresponding figures were lower for regular salaried workers and farmers at 46.7% and 41%, respectively, the survey found. About 65% of respondents who run businesses said their income has fallen significantly.
Among socio-economic categories, the survey found that nearly two-thirds of poor families (64%) reported severe loss of income. The number was 54% in middle-income families and 42% among the rich. A similar level of income loss was witnessed in both urban and rural pockets of the national capital region (NCR).
NCAER said the impact on farmers’ income looks lower than for most other groups. It is “possible that the effect on farmers could be greater after the harvesting season is over—towards the end of April or May, given that the lockdown and social distancing may make it difficult for farmers to sell and deliver their produce".
The International Labour Organization had last week warned that the pandemic and the ensuing lockdown may push millions of Indians deeper into poverty due to growing unemployment and wage reduction. “Businesses are hit across sectors in India. It is difficult to quantify right away. Everyone agrees that after such a pandemic, the revival will take time," said Rituparna Chakraborty, senior vice president at staffing firm Teamlease Services.
Though two-thirds of the people surveyed said an extension of the lockdown is important to curb the spread of covid-19, NCAER findings underlined that close to three out of every 10 people are facing a shortage of essential items. “On access to essential items… about 29.3% of households were affected by shortages in supplies of food, cooking fuel and medicine. There were significant differences between rural (32.6%) and urban (25.3%) households in their experience of supply shortages," the survey findings showed.
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