Studying The Impact Of Covid-19 Pandemic On Labour Economy

Ayush Tiwari, B.A.LL.B (Hons), Hidayatullah National Law University, New Raipur, C.G

ABSTRACT

The Covid-19 pandemic which initially started as health crisis had a wide impact on economy and labour sector was no exception to it. India’s working class which is already divided into Formal-Informal, Organized-Unorganized faced various problems with regards to number of layoffs, dismissal, reduced wages etc. Also, the sudden change in working environment led to the debate of digital divide with regards to affordability, technological advancement, literacy. Government of India also tackled the situation by announcing relief packages like Pradhan Mantri Gareeb Kalyan Yojna and Aatma Nirbhar Bharat (Self Reliant India) Program. It is often said that India’s labour engagement was less even prior to pandemic but the report of Ministry of Statistics and Programme Implementation stated that India’s Labour Force Participation Rate in 2019-20 was 49%. During the pandemic, wage disparities were accentuated, with high- income persons being able to work from home and preserve their income, while low-income workers faced job losses and lower earnings. Women, particularly those in low-wage and informal jobs, faced extra hurdles, such as greater caregiving duties and less opportunities for remote work. The epidemic has hastened digital transformation, making digital skills and literacy crucial across industries. To resolve ongoing inequities, defend employees' rights, and promote balanced work conditions, labour market reforms may be required.

Keywords: Covid-19, Labour, Crisis, Disparity, Digital Divide, Layoff.