P: ISSN No. 2231-0045 RNI No.  UPBIL/2012/55438 VOL.- XI , ISSUE- II November  - 2022
E: ISSN No. 2349-9435 Periodic Research
Impact of Covid-19 on Employment: A Case of Automobile Industry
Paper Id :  16817   Submission Date :  15/09/2022   Acceptance Date :  23/11/2022   Publication Date :  25/11/2022
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Anju Rani
Assistant Professor
Economics Department
BPS Mahila Vishwavidalaya, Khanpur Kalan
Sonepat,Haryana, India
Nidhi
Student
Economics Department
BPS Mahila Vishwavidalaya, Khanpur Kalan Sonepat
Sonepat, Haryana, India
Abstract The Covid-19 pandemic has triggered the employment opportunities worldwide after great depression and widens the poverty gap and inequality. It is estimated that four out of five, about 81 per cent of the 3.3 billion people worldwide, are affected by the partial or complete closure of their workplaces (ILO Report, 2020). So, present study is an effort to examine the impact of COVID -19 pandemic on automobile industry (informal sector) in Faridabad city for the period of 2019-2022. A total of 200 respondents are interviewed on non-probability sampling due to pandemic restriction on telephone and face to pace basis. The results of the study show that there is significant change in employment opportunities, wages, earning and especially working hours. Respondents reported that they get almost half salary and wages due to slowdown in business for a long span. 35 per cent respondents reported that they did work from home almost one year with low earning and more working hours with internet issues, inconvenient environment for business at home. So, study recommended that there is strong need to protect the informal workforce in terms of wages security, safe and healthy work environment and revival of job opportunities programme due to badly hit of pandemic by centre and state government.
Keywords Employment, Covid-19 Pandemic, Informal Sector, Wages, Automobile Industry, Haryana.
Introduction
The COVID-19 pandemic has been lambed the global labor market and governments around the world. A report by the International Labor Organization (ILO) estimates that more than 2.5 crore jobs have been threatened worldwide as a result of the spread of the novel corona virus (ILO Report, 2021). It is estimated that four out of five, about 81 per cent of the 3.3 billion people worldwide, are affected by the partial or complete closure of their workplaces (ILO Report, 2020). The United Kingdom, the United States, Canada, and various European and Asian countries have reported significant job losses, increasing their unemployment rate. The nature of employment is multilateral. It helps us to analyse the contribution made by different industries and sectors towards national income. The information relating to employment in the formal sector is collected by the Union Ministry of Labour through employment exchanges located in different parts of the country (National Council of Educational Research and Training).The number of workers; all those who are engaged in economic activities are included as employed. The worker-population ratio is an indicator that is used for analysing the employment situation in the country. This ratio is useful in knowing the proportion of the population that is actively contributing to the production of goods and services of a country. The global economy is set to expand 5.6 per cent in 2021- its strongest post-recession pace in 80 years(Global Economic Prospects, 2021).Only 57 per cent of people of working age population were employed which includes the 2 billion population in informal and 1.3 billon population in formal sector till June 2020.Many businesses, particularly micro and small enterprises, have already gone bankrupt or are facing a highly uncertain future, with negative consequences for their future productivity and their ability to retain workers. According to an ILO (International Labour Organization) survey, in 2021 of 4,520 businesses in 45 countries worldwide undertaken in the second quarter of 2020, 80 per cent of micro-enterprises and 70 per cent of small firms were facing significant financial difficulties. Globally in 2020, job losses among wage and salaried employees were estimated to be twice as large as losses among the self-employed, causing a shift in the employment structure (GWR, 2020-21) The total working hour losses refer to a sharp drop in labor income and an increase in poverty(ILO Flagship Report, 2021). Labour in India refers to employment in the economy of India. In 2020, there were around 501 million workers in India, the second largest after China. The Employment Rate in India increased to 42.40 per cent in the fourth quarter of 2020 from 40.90 per cent in the third quarter of 2020, according to MoSPI (Ministry of Statistics and Programme Implementation). In India, any person who works about eight hours a day for 273 days each year is considered to be working in the normal human year. Therefore, a person to be named as an employee must find a meaningful job of at least 2184 hours a year. A person, who does not get a job at this time, is known as an unemployed person. The second wave of Covid-19 has had a negative impact on wages and households as local vacancies are closed in many provinces. The impact of these local restrictions has been felt by people working in the informal sector, according to new data released by the Centre for Monitoring Indian Economy (CMIE, 2021). The principles of Indian employment are silent on work from a domestic perspective. There is flexibility available with employers allowing or not allowing their employee to work from home and clarifying their guidelines accordingly. Due to the nature of COVID-19 and the promotion of social distancing various national governments and central governments occasionally issue various recommendations to promote work from home. It can be shown that an infection with COVID-19 was contracted at the time of employment and arising out of work, the employer will be legally obliged to pay compensation to the affected employees. The obligation to pay compensation also depends on other factors such as the state of employment, the type of employee's employment, and the circumstances in which the injury / death / infection was caused. Accordingly, each case must be evaluated based on the facts of each case. In, this backdrop, present study is an endeavour to examine the impact of covid-19 on employment in automobile industry of Faridabad district (urban).
Aim of study The main objectives of the study is to examine the impact of COVID-19 on Retail sector in Faridabad district (Urban area) Haryana. Following are the sub-objective; 1. To examine the general and business profile of employee and employment. 2. To make a comparative analysis of wage differential, working hours before and after pandemic. 3. To provide some suggestions for further policy implications.
Review of Literature

A literature review is a type of academic writing that provides an overview of existing knowledge in a particular field of research. A good literature review summarises, analyses, evaluates and synthesises the relevant literature within a particular field of research. The present chapter reviews existing relevant literature related with the study. So, present review provides the insight on nature, structure and challenges of unemployment and study being related to impact of COVID-19 on employment.

A)    Study being related to nature, structure and challenges of unemployment

Bhattacharya and Mitra (1993) zeroed in on the employment structure in the modern area during the 1980s and found that the level of work in the assembling area to the complete work has essentially diminished. Dev (2000) contended that progression would genuinely disintegrate employment development in South Asia, basically at a gross level. Goldar (2000) pointed toward understanding the employment status in the coordinated assembling area in India until the 1990s. The relapse examination recommends that there has been a steady development of little and medium undertakings because of the adjustment of the size, construction, and development of work while the genuine wages have declined. Bhalla and Hazell (2003) examined a portion of the ramifications of various situations for expanding employment and taking out neediness throughout the following twenty years.  Study shows that India deals with a genuine issue in producing sufficient work in the years ahead to stay up with the development in the workforce. Ghose (2004) concentrated on the idea of the employment issue that India is at present facing utilizing the latest NSSO overview information from 1999-2000 and 2001 populace registration and a few different sources. It was uncovered that the fundamental purpose for the employment issue in India is that the majority of the functioning populace is poor. Kapsos (2005) examined the employment-related monetary markers, especially those that action the capacity of economies to create adequate employment and open doors for their populaces, frequently giving significant experiences into economies' generally macroeconomic exhibition. Ramaswamy (2007) assessed different parts of local employment development during 1983-to 2004-05 in India. The creator appraises the development and construction of work in the 14 significant states, as the examination of business development is essentially based on the 38th cycle (1983) to 61st cycle (2004-05). Unni and Raveendran (2007) introduced the employment development from the 50th cycle 1993-94 to 61st cycle 2004-05. Information considered in this study was taken from the work joblessness review (61st cycle 2004-05). The most recent twenty years were inspected as a general decrease in business. Dev and Venkatanarayana (2011) researched the employment and joblessness circumstances in India among all the age bunches for three and a half ten years 27th cycle (1972-73) to (2007-08) and youth for more than multi-decade, i.e., from 1983 to 2007-08. The principal objective of this paper is to analyze the attributes of the adolescent populace, particularly the size of the young and their human resources development, investigation of the youth work market, examination of the compensation pace of the youth work market, and the effect of monetary development on work market, particularly of the young work market. Bairagya (2012) discussed various goals and first decided to investigate open doors for the advancement of the casual area regarding employment age by estimating the patterns and examples and by assessing the determinants of casual area work in India. Pattanaik and Nayak (2013) examined the patterns of employment power of development in India at the total level and across areas, for the time 1961-62. Mehrotra et al (2014) showed the employment patterns in India for the time of 1993-2012 and found that there has been a change from horticulture to the assembling area with a flat out fall in farming business which has further developed schooling, diminished youngster work, the motorization of farming and increment the expectation for everyday comforts in country regions due to the development in genuine wages. Pattanaik and Nayak (2014) recognized the macroeconomic determinants of employment development power in India. Waqif and Reddy (2015) summed up the various sorts of positions accessible for new alumni into general classifications and investigates arising employment potential open doors in India in unambiguous chosen public area units and the economy overall. Anderson (2016) inspected the gendered idea of development employment nexus by breaking down the differential effects that macroeconomic strategies and designs have on development's business power by orientation for 80 nations from 1990-2012. Tripathi (2016) attempted to explore the applicable family level determinants of employment and joblessness circumstances in India with unique reference to the North-East territories of India. Behera (2019) recommended that the scale and extent of modern employment be viewed as the way of an economy's change.Elhorst (2003) found a direct relationship between the level of educational attainment and employability, explored four impacts education has on individuals’ employment pattern/employability. Investment not only generates incomes for the people but also increases productive capacity in an economy (Domar, 1946). Positive investment shocks lead to increase in employment rates (Yildırım  and  Yildırım, 2017). Unemployment rates are positively associated with a decline in fertility rate in European countries. (Jimeno & Rodriguez-Palenzuela 2002). Population Growth is the main problems of Unemployment in Jammu & Kashmir. (Gupta, 1990). Sackey and Osei (2006) found that technical and vocational training significantly decreases the probable chances of an individual becoming unemployed. Younger people are more likely to be unemployed due to the fact that they possess lower skills in comparison to their older counterparts. Both public and private investment is of immense importance as far as the economic growth of a country is concerned. The required conditions for the take-off stage, advocated for both domestic and foreign investments with the belief that it accelerates economic activities. So, the inflow of FDI has also been seen as one of the factors that foster economic growth (Uwaizie, Igwernma, & Eza, 2015).

 B)  Studies being related to Impact of Covid-19 on Informal Sector

 Liepmann and Pignatti (2021) had explored the welfare effects of unemployment benefits when informality was high. The result of the study was that the effects of UBs were positive and comparatively large in a context with high informality and that accounting for the nature of informal jobs was decisive to explaining this finding. . The study of Kaur and Shubham (2021) had revealed the reverse migration during Covid-19 crisis. The research analysed that most of these reverse migrants had been engaged in the informal sector without access to social protection and little money for food or housing. The study concluded that greater emphasis needs to be given on outcome-based skill intervention by undertaking skill activities in emerging areas and should also include soft skills and digital literacy. Kumar and Srivastava (2021) had examined the impact of COVID-19 on employment in urban areas. The study stated that central and state governments have taken various measures such as increasing spending on infrastructure creation and enabling access to cheaper lending for businesses, to sustain economic activity and boost employment generation.).  Similarly, a study by Chung et al. (2020) had examined the working from the home during COVID-19 lockdown. The study shows that individual employees’ predominantly positive experiences of home working during this period have influenced their attitudes and preferences towards flexible working and the division of housework/care for the future.  Skills provided by the ILO employment programs had a positive impact. There were three channels linking participation in the employment program to reduction in violence played a role in Somalia, the economic opportunity, contact and grievances Borino and Sage (2019). Economic crises, gap between the curriculum and industry requirement and increasing labour force are the main cause of unemployment in Haryana. Government need to work with the social groups as well to aware the youth about various skill related programs running by government agencies and various NGOs and create a working and prosperous state (Dahiya, 2019). A research of Nyczak and Viegelahn (2018) had examined the wages in exporting and importing firms of the manufacturing sector in Africa. The results of the paper shows that the comparative advantage of firms in export markets was mainly based on low costs than on quality, and where firms import predominantly out of necessity than out of choice. The study also shows that there was no significant gender wage gap within trading firms in the sample. 

Main Text

Profile of Haryana
The State of Haryana is surrounded by Himachal Pradesh in the North, Uttar Pradesh in the East, Punjab in the West and Rajasthan in the South. Near the National Capital, Delhi, the State surrounds it from three sides. It is spread over an area of 44,212 sq. Km. Km with an area covering 1.3 percent of the country. Haryana nationally is a small state, State’s contribution to National Gross Domestic Product at continuous rates (2011-12) is estimated at 3.8 percent according to the Urgent 2019-2011.
The spread of the Covid-19 virus was a major challenge for the global economy and for the Indian economy. Haryana's economy has also been hit hard by the Covid-19 pandemic. According to Advance Estimates for the year 2020-21, the Government's GSDP at current rates is estimated at7,64,872.41 crore, recording a negative 2.0 per cent growth in 2020-21 due to Covid-19 compared to a growth rate of 10.7 per cent reached 2019-20. Industrial Budget decreased to 30.2 per cent and Targeted Sector Budget is set at 50.9 per cent in 2020-21.The spread of the Covid-19 virus was the biggest economic challenge in the world over the past hundred years. The GSDP (Gross State Domestic Product) of the state is also estimated to be at 5.7 per cent. As a result of the gradual opening, economic activity in Government and at the National level began to improve. Rapid V-shaped recovery is considered in the State economic activities of 2021-22. The State Government intends to introduce Haryana Enterprises & Employment Policy-2020 (HEEP-2020) to address the issue of State growth. The aim of the policy is to attract investment of 1 lakh crore and to create 5 lakh jobs in Government. The main objectives of the Prime Minister's Employment Generation Programme are to provide Micro, Small, and Medium Enterprises (MSME) business start-up opportunities.


The Faridabad region is about 25 kilometres from Delhi. It is bound by the Union Territory of Delhi (National Capital) to the north, Palwal District to the south, Gurgaon District to the west. River Yamuna divides the Boundary District to the east and the UP state. Delhi-Agra National Highway No. 2 passes through the centre of the region. In Faridabad major exportable items are auto parts, shoes, and tractor. Bata India Ltd., Eicher Tractor Ltd., Escorts, JCB Ltd., Goodyear India Ltd., Whirlpool India Ltd., Escorts Ltd. Etc are some names of industries in Faridabad. 
Relevance of the Study
Prior to the COVID-19 crisis, the Indian economy had entered a period of slow growth. According to the IMF, during the period 2015-2019 growth has dropped from 8.0 to 4.0 percent. In 2018, the unemployment rate exceeded 6 percent, while from 2012 to 2018.The COVID-19 crisis hit an Indian economy that was already slowing. The Government of India instituted a 21-day lockdown on 24 March 2020. This was one of the world’s strictest, halting many economic activities, storing basic services and keeping only open stores supplying the necessary consumer goods. The shock to jobs is severe, and the worst at the lower ends of the employment structure where it will affect large numbers of people. This will be reflected in worsening employment quality, and rising rates of unemployment and underemployment, more people out of the labour force, and increased poverty.The important thing beyond these standards pre-existing immigrant workers the backbone of the Indian economy and is now one of them which strikes the most. India faces a long-term labor market challenge, including slower and more volatile changes. Between March and April 2020, the IHS Market Purchasing Managers ’Index showing the latest impact of the pandemic, dropped from 52 to 27, the most severe decline and the lowest reading rate since the start of data collection. At the same time the IHS Market India Services Business Activity Index dropped from 49 to 5, also the lowest-ever level.The Indian economy is dominated by small and mostly informal businesses where about one-third of employees in businesses that employ less than 10 people in the informal sector. In this backdrop, present analysis is an effort to examine the impact of COVID-19 on retail sector in Faridabad district (Urban area) Haryana.
Methodology
To achieve the above objectives the study is based on cross section primary data for the period 2019-2022 in the Faridabad district (urban) Haryana. A well-structured questionnaire, information related to personal and business profile about employees, employer and questions about impact of the COVID-19 on wages, salary and working hours has been asked. A pilot survey has been conducted on 50 respondents before final interviewed of respondents. Primary data has to be collected in the month of January 2022 through survey schedule and personal direct interview in which telephone services are used at most , whereas possible, due to the COVID-19 pandemic restrictions. Non probability sampling (Convenience sampling) is used for gathering sampling unit from universe due to pandemic. The ratio, percentage techniques are used for analysis.
Result and Discussion


Table 1 depicts the general profile of selected respondent which shows that 56 percent of respondent is young population lying in the age group 0-40 years and 81 per cent is male. Almost 61 percent respondents reported that they have completed post-graduation and have nuclear family with 2-4 family members.  In short it can be observed from above analysis that young population with graduate degree of education and small size of family are dominating in working in retail sector in selected region.

Table 2 represents the business profile of employer and employee in selected region and reveals tha72 percent are employees and almost 50 per cent is casual employee and out of employer majority of respondent reported that they are sole owner of their business. Whereas 92 percent respondents reported that their level of education is the main reason to join that particular business.  Respondents who are not satisfied reported that more working hours and low salary are the main reasons for their dissatisfaction. Almost 85 selected respondents have up to 5 year working experience in that business. In short, it can be calculated from above analysis that majority of respondent is running sole business and have casual employees in their business  of selling point.

Table 3 shows business profile of employer and depicts that 47.27 per cent owner have a long span experience with many branches of their business and almost 50 percent business is still working on  ideas of product differentiation in their business and found beneficial for both sale improvement with net profit.  One third respondents reported that particular business is good for their growth and have good working environment with diversified role.

Table 4  reveals the impact of covid-19 on employment and respondents reported that  92 per cent although there are  in same business  in pandemic period but  their working hour have a cut with salary due to shut down of workplace.

Table 5 depicts the impact of pandemic on annual  earning of employee and found that  87 per cent respondent reported that pandemic had  badly affected their  earning from business and they got minimum  amount of their earning with lots of delayed from owner side.

Table 6 shows the impact of COVID-19 on working hours on both employees and respondents reported that due to government regulations their working hours have significance cut in their working hour with earning cut and 35 percent also did work from home but they have face internet and inconvenient environment difficulties while working at home.

Conclusion There is no doubt that Indian economy has entered a period of slow growth prior to pandemic. According to the IMF, during the period 2015-2019, Indian economy’s growth rate has dropped from 8.0 to 4.0 percent. In 2018, the unemployment rate exceeded 6 percent, while from 2012 .The COVID-19 crisis hit an economy that was already slowing. So, present study is an endeavour to examine the impact of Covid-19 on employment in informal sector (automobile industry various outlet and workshop in Faridabad District (Urban) for the period 2019- 2022. The major findings of the study reveal that there is significant change in employment opportunities, wages, turnover of a business and especially working hours. Respondents reported that they get almost half salary and wages due to slowdown in business for a long span. 35 per cent respondents reported that they did work from home with low earning and more working hours with internet issues, inconvenient environment for business at home. According to International Labour Organisation 60 per cent of population engaged in informal sector especially in emerging and developing economies and for Indian economy almost 90 per cent workforce involved in informal sector of country. So, there is strong need to protect the informal workforce in terms of wages security, safe and healthy work environment and revival of job opportunities programme due to badly hit of pandemic by centre and state government. Study also proposed that there is ample scope of research in this area with the inclusion of more variables with large sample size and probability sampling.
Limitation of the Study Major limitation of work is that only urban area of Faridabad District has been undertaken for universe of study. With this due to Covid- 19 pandemic non probability sampling is used as a selection of sampling unit for current analysis.
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