COVID impact: 34 pc workers in unorganised sector remain in debt

M K Suresh

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Over 43 lakh people are working in unorganised sector. The lockdown which started in March caused them huge financial loss and liabilities.

Migrant workers | Photo: AP

Thiruvananthapuram: The workers in unorganised sector faced a huge setback during the COVID lockdown, it has been found out in a study. Apart from the normal losses, 34 percent of people in production, service and sales sectors are in debt. 90 percent in production sector, 88 percent in sales sector and 92 percent in service sector could not repay the loans during this period.

This was found out in a rapid survey held for the Department of Economics and Statistics. Over 43 lakh people are working in unorganised sector. The lockdown which started in March caused them huge financial loss and liabilities.

Production sector

According to the national sample survey held 4 years ago, 23 percent of the labourers in unorganised sector are working in production sector. As the lockdown was imposed, 77 percent workers lost jobs in April and the loss of income was dropped by 86 percent. This gradually improved as months passed and by July the loss of income was only 36 percent.

Service sector

About half of the people in unorganised sector are working in service sector. 78 percent of people lost jobs and the loss if income was 90 percent in April. After three months, situation improved and the loss of income was reduced to 67 percent in July. The labourers were working in only 69 percent days in July.

Sales sector

A total of 31 percent people are working in the sales sector. As this was included in the essential category, the establishments opened on 29 percent days in April. However, 62 percent job loss and 71 percent loss of income was experienced. As the number of containment zones increased in July, there was not much of a improvement in the month.

Migrant workers

81 percent migrant workers remained jobless in April. This was 69 percent in May and 50 percent in June. As majority of them returned to their native places, 55 percent of the labourers were not available after July.

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