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41 lakh youth lose jobs in India due to COVID19 impact: ILO-ADB report

As many as 41 lakh youth in the country lost jobs due to the COVID-19 pandemic while construction and farm sector workers account for the majority of job losses, according to a joints report by the International Labour Organization (ILO) and the Asian Development Bank (ADB).

For India, the report estimates job loss for 4.1 million youth. Construction and agriculture have witnessed the major job losses among seven key sectors, said the ILO-ADB report, titled Tackling the COVID-19 youth employment crisis in Asia and the Pacific, released on Tuesday.

Youth (1524 years) will be hit harder than adults (25 and older) in the immediate crisis and risk bearing higher longer-term economic and social costs, said the report.

It said that in India, two-thirds of firm-level apprenticeships and three quarters of internships were completely interrupted during the pandemic.

The pre-crisis challenges for youth are now amplified since COVID-19 hit. Without sufficient attention, our fear is that this risks creating a lockdown generation that could feel the weight of this crisis for many years to come, said Sara Elder, lead author of the report and head of the ILO Regional Economic and Social Analysis unit.

The report cites three ways in which young people are affected in the current crisis. These are job disruptions in the form of reduced working hours and earnings, and job losses for both paid workers and the self-employed; disruptions in their education and training; and difficulties in from school to work, and moving between jobs in a recession.

Youth unemployment rates in the region increased sharply in the first quarter of 2020 from the last quarter of 2019, it said.

Compared to the first quarter of 2019, the youth unemployment rate increased in six of the nine economies with available data Australia, Indonesia, Japan, Malaysia, and Vietnam, as well as in Hong Kong, China, which showed the largest increase of 3 percentage points. In all these economies, youth rates increased more than adult rates, the report showed.

Between 1 crore and 1.5 crore youth jobs (full-time equivalent) may be lost across 13 countries in Asia and the Pacific in 2020, according to the reports projections.

According to the report, a reasons young people in the region face greater labour market disruption and job losses than adults is that nearly half of them (more than 10 crore ) were employed in the four sectors hardest hit by the crisis. The sectors are wholesale and retail trade and repair; manufacturing; rental and business services; and accommodation and food services.

Young women are over-represented in three of the four most-affected sectors, particularly in accommodation and food services, it said.