The Coronavirus pandemic has wrecked the lives and livelihoods of millions of people in India, especially those in major cities like Mumbai, Delhi and Chennai. Given the density and connectedness of Indian cities, the virus has unsurprisingly infected more people in urban areas. As India now opens up after more than two months of lockdown, the focus of the state should not only be on fighting the spread of the virus but also on reviving the livelihoods affected by the harsh national lockdown.
The lockdown has also disproportionately damaged the employment and livelihood prospects of those living in cities. A phone survey conducted by Azim Premji University along with civil society organisations across 12 states found that 80% of urban residents lost their employment during the lockdown compared to 57% rural residents.
In urban areas, self-employed workers and casual wage workers are most affected with 84% and 81% losing their employment, respectively. A total of 89% of the urban households reported that they would not be able to pay rent for the following month compared to 65% in rural areas.
With the opening of shops, offices and restaurants in the “unlock” phase, the unemployment scenario seems to have partially recovered. According to the latest data by the Centre for Monitoring of Indian Economy for the week ending June 14, India’s job loss rate has now reduced to 11.63%.
However, the urban unemployment rate (13.1%) is still higher than the rural unemployment rate (10.96%). India was already facing a major unemployment crisis before the onset of Covid-19 which has now been exacerbated with the imposition of the lockdown. Hence, we need bold new measures to tackle the ongoing crisis.
The haunting images of workers leaving the city for their villages on foot revealed the extreme vulnerability of huge sections of the urban population. It indicates that the urban poor, especially the internal migrant workers, lack basic social security for their subsistence.
While the economic impact of lockdown was most severe in cities, the options for accessing welfare and relief measures is considerably more difficult for urban residents. As per the Azim Premji University survey, while 85% of vulnerable households in rural areas received ration, only 65% of those in urban areas could access it. Further, while 58% received some form of cash transfer in rural areas, only 36% received it in urban areas.
The much-delayed economic relief package announced by the Central government does not provide much for migrant workers and vulnerable urban communities. A report by the Indo-Global Social Service Society (IGSSS) that analysed 175 orders/circulars issued by the Centre until May 1 found that only 27 of them were directly related to urban poor and marginal groups.
Informal sector workers and vulnerable groups like street vendors, homeless and transgender communities have received minimal support from the government during this crisis.
While the informal workers have been left in the lurch, the rights of formal sector workers are also being undermined by various state governments. Uttar Pradesh has issued an ordinance that suspends almost all labour laws for a period of three years.
Madhya Pradesh and Gujarat have also announced “labour reforms” that enables companies to fire workers easily and exempt them from health and safety norms. Overall, the policy response of the government to the Covid crisis has made the lives of both formal and informal urban workers more precarious.
As India faces an unprecedented economic crisis, it is important for the state to undertake proactive policy measures that directly improve the livelihoods of the country’s workforce. These measures can be a combination of direct cash transfers to vulnerable groups and strengthening of existing welfare programmes.
For addressing the urban migrant worker crisis, the Public Distribution System needs to be universalised to enable those that do not have a ration card to also receive food supplies, at least for the next few months. Since the urban poor will face a larger livelihood crisis for an extended period after Covid, we also need a more comprehensive policy measure - an Urban Employment Guarantee Programme.
Sustainable employment
Modelled on the Mahatma Gandhi National Rural Employment Guarantee Act, such a programme will offer succour to a huge section of urban informal workers. The need for an employment guarantee programme not restricted to rural areas has been articulated in different contexts.
Last year, some of us brought out a policy paper titled “Strengthening Towns through Sustainable Employment” as part of Azim Premji University’s State of Working India Report where we laid down the contours of what an urban employment guarantee programme could look like. We proposed the creation of a national programme that guarantees 100 days of work a year for casual workers and 150 contiguous days of apprenticeship for educated youth.
In the context of the present Covid-induced economic crises, the call for such an urban employment guarantee has gathered more steam. Odisha recently launched an Urban Wage Employment Initiative for urban informal labour to carry out public works identified by the Urban Local Bodies (ULBs) across the state.
Similarly, Himachal Pradesh has announced the Mukhya Mantri Shahri Ajeevika Guarantee Yojana which assures urban poor 120 days’ work. Punjab and Rajasthan have requested the support of the Centre for such a programme. Kerala has been running the Ayyankali Urban Employment Guarantee Scheme across its ULBs successfully for many years.
As urban livelihoods across the country gets ruined, it is the right time for the Centre to launch a National Urban Employment Guarantee Programme. If it cannot enact such a programme across the country, the Centre should at least offer financial support to states that wish to introduce such programmes.
An urban employment guarantee will not only cater to livelihood needs of the urban poor but also create public infrastructure, restore urban commons and improve the capacity of the fledgling ULBs. The present crisis offers us an opportunity to introduce such a policy measure that revives urban livelihoods.
(The writer is a lawyer and researcher on urban issues and a consultant with the Centre for Law and Policy Research, Bengaluru)