40% salaried workers in India took up casual wage work due to Covid: World Bank

According to a World Bank report, about 40 percent of salaried workers in India had to switch to casual wage work in the second quarter of 2020 due to the Covid pandemic.

“In Q2 2020, many urban workers switched to casual jobs due to the pandemic and more than 35% of urban self-employed workers switched to casual jobs, with men (39%) being more affected than women (25%)," the World Bank said in its India Development Report.

The report added that among wage workers, about 40 percent had to switch to casual wage work, with both men and women being equally impacted.

By the second quarter of 2022, it said, upward job transitions became more common as workers shifted from being unemployed to casual wage workers: 10 percent of male jobless workers in the first quarter of 2022 became salaried workers. casual workers in the second quarter of 2022. The report added that about 25 percent of female casual wage workers moved into self-employment and paid work, while a similar percentage of the workforce also moved.

According to the World Bank, since 2020, the female worker population ratio (FWPR) has increased, but it is driven by women working without pay in rural areas.

India's labor market, according to the report, has returned to stability since the pandemic, but "it remains unclear how good job growth can be fostered and sustained over time."

It added that from now on, the rise of “gig-workers” (workers on a digital platform) and the contractual nature of their employment will be important indicators to track.

The World Bank on Tuesday cut its forecast for India's economic growth in the current fiscal year that began April 1 from 6.6% to 6.3% as it expects higher borrowing costs to hurt consumption. The World Bank estimated growth for the last fiscal year at 6.9%. It expected the current account deficit to narrow to 2.1% of GDP for the current fiscal year from an estimated 3% a year earlier, thanks to strong services exports and a narrowing merchandise trade deficit.

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