Amid the lockdown imposed by government to curb the spread of coronavirus, the share of unemployment in India has reached its peak. After the 21-day lockdown, government has introduced lockdown 2.0due to the rising number of Covid-19 cases in the nation. It has been reported that the urban workers are the worst hit, but also significant job losses can be witnessed among rural workers too.
The rate of labor participation (employed plus those searching for jobs) also decreased drastically amidst the pandemic outbreak. The Centre for Monitoring Indian Economy (CMIE) measured the overall unemployment rate prevailing in India and reported that a sharp increase in the rate following the first two weeks of lockdown. Also, the overall labor participation rate witnessed a drastic plunge downwards to 36.1% as on April 5th from approx. 42% two weeks back.
Majority of the employees are fearing a loss of job and some of the workers have already seen pay cuts and delay in getting appraisals. The crisis is leading to anxiousness among employees and they are worried about their future presently. Many experts said that there is high stress among employees as well as organizations due to the ongoing lockdown which remain uncertain.
HR leaders as well as people managers are supporting and encouraging employees in order to survive this crisis situation by regularly communicating with them about the business updates, actions of the organization as well as some positive news. Companies are also trying to include online sessions for its employees in order to keep them motivated and also stress-free during this tough time.
It has been reported that many organizations would be facing with downsizing at some point of time during the next 12 months’ time period and because of that reviewing salaries, benefits, perks as well as knocking off increments or bonuses would be quite normal in organizations.