For lakhs of people employed in the construction and services sectors, life after the lockdown is fraught with multiple challenges as job losses and a lack of food security are expected to hit both the sectors hard.
With the country’s growth forecast cut by half and the world on the brink of a recession, real estate developers say a crisis seems inevitable, as much of the problems associated with COVID-19 were still developing.
“In Bengaluru, about four to five lakh workers are employed in the construction sector. At this juncture, we believe that only about 60% of them will have jobs,” said Credai Bengaluru Chairman Suresh Hari. “But the situation is too fluid to arrive at a conclusion.”
According to Hari, the sector is still recovering from the economic slowdown.
Prof Babu Mathew, of the National Law School of India University, said the pandemic had exposed the underbelly of the economy where the government was trying to manage with least control on the market.
“We don’t know the full extent of the damage yet. But it is time for the government to strengthen the labour laws even as it supports the market with different programmes,” Mathew said.
At the same time, he said, programmes such as the Public Distribution System and ESI hospitals should be finetuned for the benefit of labourers.
Supriya Roy Chowdhury, of the Institute of Social and Economic Change, and Carol Upadhya, of the National Institute of Advanced Studies, who collaborated for a report on ‘Work, Migration and Livelihood in India’, said the government should rethink about its approach.
“This unprecedented event will hit hard both the rural and urban economy. At present, the administration is very disorganised even in food distribution. It will not help lakhs of people for whom daily wage is the only means of livelihood,” Supriya said.
Carol said the rural economy would face pressure from landless labourers and marginal farmers who return to villages in the wake of increased unemployment. “Schemes like the Mahatma Gandhi National Rural Employment Guarantee Scheme need to be strengthened, and both the employment days and wages should be enhanced,” she added.
Advocate Clifron Rosario noted that as employment was increasingly connected to the globalised market, the reduced consumption would lead to larger problems. “The government should start discussions with all stakeholders even as it deals with the pandemic to help avoid a larger crisis in the coming days,” he said.