One-month Kerala lockdown prices staff Rs 10.500 crore in wages

Express News Service
THIRUVANANTHAPURAM: The livelihood of at the least 73 lakh individuals within the state has been hit by the continuing lockdown.Of the 1.27-crore robust workforce in Kerala, 57.7% work in manufacturing, building, commerce, transport and lodges and restaurant industries which were straight hit by the lockdown.

While most of them aren’t incomes something, a couple of firms which can be closed present sustenance allowances to staff as a humanitarian gesture. 

Owing to the lockdown, the lack of wages suffered by self-employed and informal staff within the state amounted to Rs 350 crore per day, a research by the Kerala State Planning Board on the financial influence of final yr’s lockdown has discovered.

It mentioned one month of lockdown disadvantaged the state’s workforce Rs 10,500 crore in wages. The state authorities, which is gearing as much as prolong until June 23 the lockdown that began on May 8, hasn’t launched any money switch scheme for workers going through monetary crunch, apart from extending the month-to-month free grocery package distribution for all households by one other month. 

As per the periodic labour power survey of 2018, out of the 1.27 crore staff in Kerala, 48.1 lakh had been self-employed and 43.8 lakh had been common staff.

The remaining 35.2 lakh had been informal staff. The complete workforce comprised 93.7 lakh males and 33.4 lakh ladies.

The lack of wages is unfold over all these classes, amongst which the service sector has taken an enormous blow. This sector, using 65.6 lakh staff, is the biggest supply of employment in Kerala. 

The planning board research held in May final yr additionally estimated that throughout the first quarter of 2020-21 fiscal when the nationwide lockdown paralysed regular life, the state would endure a shortfall of at the least Rs 8,000 crore within the gross worth addition (GVA).   

State heading in the direction of extreme disaster: Expert

Like GDP (Gross Domestic Product), GVA signifies the gross worth of financial produce besides that GDP contains tax elements whereas the latter data the pure worth of the produce.

 If the state is locked down for a month, the lack of GVA suffered by the manufacturing sector can be Rs 6,600 crore.

In the earlier lockdown, when lodges and eating places had been absolutely shut, the month-to-month lack of GVA suffered by the sector was round Rs 15,000 crore. 

Economist B A Prakash mentioned the estimated losses might be increased this time and the state is heading in the direction of unprecedented monetary disaster. 

“Governments in many other countries took the health of the economy into account while unveiling measures to contain the virus. Unfortunately, our governments are not taking this angle seriously,” mentioned Prakash.  

He mentioned the perfect approach earlier than the state authorities can be to restart the economic system with cheap restrictions.

“There can be a phased unlocking and even stricter monitoring of social distancing norms. Let’s not deny people their livelihood and focus entirely on fighting the virus,” he mentioned.