Recovery in the economy, increased employment but adversely affecting people's family income

Mumbai, Ta. 24 November 2020, Tuesday

The country's economy is recovering, companies are making huge profits and employment rates are rising, but the pay scale is not growing as much as it used to, which has led to lower family incomes for ordinary Indians.

More than 50 per cent of the country's households saw a decline in income during the lockdown and a large number of them did not see an increase in their income, according to a report by the Center for Monitoring Indian Economy.

Many economic indicators are signaling a strong recovery in the country, but household income growth is very slow.

As of March this year, 40 to 5 per cent households were seeing an increase in their income. However, in April, the figure fell to 6.50 per cent from just 4.50 per cent in July.

However, despite the onset of economic recovery, the number of households showing income growth is very low. In August, 2.50 per cent households reported an increase in income, compared to 8.50 per cent in October. Thus, the figure is nowhere near the 20-30 per cent households that reported an increase in income before the lockdown, the report said.

The unemployment rate in the country is also declining and has come close to the level before the lockdown. Employment has returned but not income. The report also notes that those whose jobs have survived have experienced pay cuts and those who have lost their jobs have been forced to accept new jobs at lower salaries.