COVID may treble joblessness: State Innovation and Transformation Ayog (SITA)

GUWAHATI: SITA (State Innovation and Transformation Ayog) of the State government has said that the number of jobless people in the State may be doubled or trebled in the aftermath of COVID-19 pandemic.

SITA, together with OKD (Omeo Kumar Das) Institute of Social Change and Development, conducted a survey on the Economy of Assam in the backdrop of COVID-19 pandemic. SITA submitted the report to the Chief Minister of the State.

The report says that there is probability of increase in unemployment in the State as an impact of the pandemic. The State, according to the report, has an unemployment rate of 8 per cent at present. However, the survey foresees an increase in unemployment in the State from 16-27 per cent, leading to additional unemployment to 15.7-27.1 lakh people.

"The increase in unemployment will have a negative impact on income, both directly and indirectly. Those who will lose employment will have reduced income as a direct effect, but most importantly, increase in unemployment will put a downward pressure on the general wage level, especially in rural areas. As a result of these twin processes aggregate demand will further shrink, and recovery will become extremely difficult," the report said, and added, "This is going to increase incidences of poverty with far-reaching socio-political implications. This is more so since 53.7 per cent of the households in Assam has single earner."

The report further said that the present 32 per cent poverty ratio in Assam is likely to go up to 37.7 per cent if income falls by 5 per cent, up to 43.8 per cent if income falls by 10 per cent and up to 50.8 per cent if income falls by 15 per cent.

The areas to be worst affected by the pandemic, according to the report, are business and commerce, transportation, construction sector, tourism and hotels, etc.

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