In a warning for countries like India, the McKinsey report says that the pandemic has already significantly accelerated the loss of low-wage jobs. As workplace and business requirements change in the current decade everywhere including India, the less educated, women, ethnic minorities and young people will be most affected, it warns.
Covid may have already begun rendering many existing job rules obsolete, new data has shown. The new findings signal that the tried and tested methods of looking for, finding and keeping a job may not work anymore by the end of this decade.
More than 100 million workers in eight of the world’s top 8 economies might have to change profession by 2030, Bloomberg reported citing a latest McKinsey research.
These economies are India, UK, US, China, France, Japan, Germany and Spain. This is a direct outcome of the changes in labour force equations caused by the pandemic, the research says.
The post-pandemic era will require workers to reskill/retrain themselves in order to get employment in higher-skilled roles, because Covid has — and further will — cut job opportunities in low-paid professions, it adds.
This comes as a stark reminder for countries such as India where the lion’s share of employment happens to be low-skill, informal and low-paid.
The findings come in the backdrop of new India jobs data that highlights the volatile employment scene in the past six months — ranging from a low of 6.5% in November 2020 to a high of 9.1% in December 2020.
Prior to a sharp rebound in employment in January 2021, India had witnessed huge job losses both during the lockdown period and the graded reopening phase. The lowest point was between May and August, when an estimated 6.6 million white collar professional jobs were lost.
These included jobs in categories such as physicians, engineers and teachers. Other categories that witnessed significant job losses included analysts and accountants.
During May-August 2019, white-collar employment in India stood at 18.8 million. By August 2020, the number fell to 12.2 million, the lowest point since 2016, erasing the jobs gain India had made in the last four years.
As for industrial workers, 5 million jobs were lost during the period, making for a sharp 26 per cent fall year on year.
According to the Centre for Monitoring Indian Economy (CMIE), the high volatility shows the high share of informal jobs in the country. It is basically a function of the fact that most of the employed Indians do not have regular jobs.
“Their employment on any given day depends upon the state of the economy, upon the local environment, business conditions at large and a fair degree of luck,” CMIE says.
In a warning for countries like India that are dominated by low-skill and low-paid work, the McKinsey report said that the pandemic has already significantly accelerated the loss of low-wage jobs. As workplace and business requirements change in the current decade everywhere including India, the less educated, women, ethnic minorities and young people will be most affected, it warned.