Labour and compliance reforms key to address job crisis, says TeamLease Chairman Manish Sabharwal

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Coronavirus cases continue to increase but the Indian job market has been the biggest casualty of COVID-19.

Centre of Monitoring Indian Economy (CMIE) report suggests that at least 50 lakh salaried people have lost their jobs in the month of July but there is a recovery which has been seen. According to the report, the month of July saw Haryana with the highest unemployment rate of 24.5 percent, and with Puducherry (21.1 percent), Delhi (20.3 percent), Himachal Pradesh (18.6 percent) and Goa (17.1 percent) rounding up the top five. 

On India Revival Council, a panel of industry experts discussed the job crisis in India. The panel had industry members like Mahesh Vyas of Centre for Monitoring India Economy, Manish Sabharwal of TeamLease, Dilip Chenoy of FCCI, Ajit Pai, Officer of Special Duty to Vice Chairman NITI Aayog.

Explaining the job trends seen according to the CMIE report, Vyas said: “What we have seen is that the total number of jobs that are still lost after the imposition of the lockdown because of the COVID-19 pandemic is at the number of 11 million which was in July. As compared to the average of FY19-20. But the breakup of this by sectors, tells a slightly interesting story. That there is a big increase in the number of jobs amongst farmers. so there’s an increase of about 15 million jobs over there. And, this makes sense because the rainfall this year was good.” He also said that an increase in the number of jobs was seen in the unorganised sector.

Sabharwal of Team Lease, said: “There are 3 kinds of reforms institutional reforms, capacity building, and the flick of pen reforms. In 90 days you could out of the 69000 compliances, 7000 filings that change a thousand times a year diet corporate India are subject to. In 90 days you could take and acts through this and appoint a compliance commission which says we will cut 50 per cent of the filings.”

“So I’d say labour reforms compliance reforms and full implementation of the new education policy along with banking a form which is a massive part to our current GDP ratio in a sustainable way,” he added.

Chenoy of FICCI said that “first of all, we need bipartisan support to whatever reforms come in. Because there is a perception that if you do something for the industry will be labelled in a particular manner and it will not be politically sustainable to do that. The state and the centre and all political parties should understand that if we collectively do these reforms and collectively work on the three kinds of reforms when it becomes really simple.”

Adding to this, Pai of Niti Aayog said that one should not forget that it’s not only the centre when it comes to reforms, but work also has to happen at the state and the local level.