The Central Government has announced a slew of measures as part of a stimulus package aimed at revitalising the economy, which has been left battered by the second wave of Covid-19. Things had started looking up earlier this year as the January-March quarter witnessed a GDP growth of 1.6 per cent, but the havoc wreaked by the virus in April-May negated the gains. Now, with the daily caseload dropping to less than 40,000 and millions of vaccine doses being given every day, this is an opportune time to step up economic activity and restore it to pre-Covid levels. The Rs 1.1 lakh crore loan guarantee scheme for the pandemic-hit sectors, including Rs 50,000 crore for the top-priority health sector, is expected to provide much-needed liquidity support. However, economic recovery will be patchy unless adequate attention is paid to job creation and revival of livelihoods.

The Atmanirbhar Bharat Rozgar Yojana, which seeks to incentivise employers for the creation of new employment along with social security benefits and restoration of jobs lost during the pandemic, is still a work in progress. The situation on the ground continues to be bleak. India’s employment rate, regarded as the best barometer of the performance of labour markets, is struggling to pick up. The rate had largely stayed above 37 per cent between July 2020 and March 2021; it dropped to 36.8 per cent in April this year and 35.3 per cent in May, and has barely touched 36 per cent this month. About 73.5 lakh salaried and non-salaried people lost their jobs in April 2021, according to the Centre for Monitoring Indian Economy. The silver lining is that the unemployment rate is recording a decline after the mayhem of May.

While the migrant workers bore the brunt of the first wave and the nationwide lockdown, the second wave spared neither the poor nor the middle class in terms of infections, deaths and job losses. The alarming positivity and fatality rates severely impacted consumption and consumer confidence. Doles such as free ration can help only in the short term. What’s needed are jobs — a prerequisite for financial security and economic buoyancy.