BENGALURU: Seven of 10 informal workers in Bengaluru lost employment during the lockdown, and women and people of lower castes were disproportionately affected, according to a new study.Titled ‘Impact of Covid-19 on livelihoods of informal sector workers and vulnerable groups in Bengaluru: A view from the ground’, the study was conducted by Azim Premji University in December. Data was gathered through direct interviews of around 350 people across 24 localities, and from non-governmental organisations working with various vulnerable communities.
While 70% of informal workers lost their jobs, this figure hides the fact that some groups were affected more than others, the study found.While women were twice as likely as men to lose their jobs, either during the lockdown or afterwards, men who lost their jobs were eight times more likely to regain employment after restrictions were lifted. Job losses were also more severe among people of lower castes, compared to people from intermediate and upper castes, and worse for daily wage workers compared to regular wage workers. More young people lost their jobs compared to older workers.
Although restrictions were lifted months ago, neither their livelihoods nor incomes are back to pre-lockdown levels. Fifteen per cent of informal workers are still unemployed, 23% experienced a break in employment during the pandemic, about 46% are currently engaged in the same job, but with less pay, the study found.
The monthly income of respondents now ranges between Rs 6,000 and Rs 12,500, compared to between Rs 6,000 and Rs 20,000 before the lockdown. Only about 6% of people are in the same job with either the same or higher income, the study found. This applied to all types of informal workers: self-employed (street vendors, waste pickers, autorickshaw drivers, mechanics, dhobis, small businesses); people working for wages (domestic workers, sex workers, construction labourers, etc), and other groups (garment workers, security staff, retail shop workers).
Distressing debt
Financial distress has pushed many families into debt. “High-interest loans from local money lenders have seen a resurgence, with increasing defaults. This is driving families into deeper debt traps. Elderly domestic workers, those aged over 50, with few alternative sources of earning, might be facing great difficulty in sustaining themselves in the coming months,” the study said.
There were, however, some trades and sectors such as home sanitisation services, home delivery and tailoring, that recorded an increase in incomes.Although Bengaluru is expected to drive demand to around 70% of pre-Covid levels, “apprehensions continue with regard to issues such as Covid-related health complexities and long-term employment opportunities”, the study noted.