The number of people employed fell to 375.45 million in May from 390.79 million in April, reports The Hindustan Times, citing data from the Centre for Monitoring Indian Economy. The loss of jobs erases gains achieved since July 2020 and could impact consumer spending and the country’s economic revival. In April and May, the number of people employed in salaried and non-salaried jobs fell by almost 23 million as the second wave of the pandemic infected millions of Indians, and states imposed lockdowns to stem the spread of the virus. The number of people unemployed but actively looking for jobs rose by 17 million to 50.72 million, reflecting the willingness to work but scarcity of opportunities.

Arup Mitra, a professor of economics at the Institute of Economic Growth, said, “The job market was stretched since last year’s lockdown. The situation was looking up between December and March, but the second wave has done more damage. What we are not realizing is that the job loss is squeezing private demand. People losing jobs will impact revival. If the consumer does not have income, he or she won’t spend.”