On Employment,Wage and Consumption: Impact of Nationwide Lockdown on Muslim Casual Workers

Abstract

The effects of nationwide lockdown were disproportionate on informal workers. Based on a primary household survey conducted among Muslim casual labour working in Aligarh lock industries, we add to studies on the socio-economic impact of the lockdown. We find 44% reduction in employment rate and fall in daily wage for 60% of workers, in the post-lockdown period. A net job loss of 20% was found. The incidence of violation with the minimum wages is severe in the lock industries, and this has increased tremendously as high as 90% for some workers, in the post-lockdown. Muslim women were affected more than men, in terms of unemployment and wages. With little to no savings, the income loss during the lockdown has led to a rise in indebtedness with one-third of households incurring debt Rs. 5,000–10,000. More than 90% of them were found unable to pay rent and electricity bills. Protecting livelihoods and dignity of workers is a constitutional duty of the state. This has become even more demanding now.

JEL Codes: E21, E24, E26

Keywords

Lockdown Muslim casual employment minimum wages consumption

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