THIRUVANANTHAPURAM: The loss suffered by various enterprises in services, manufacturing and trade sectors during the second edition of the lockdown in the state from May to August was higher than the loss suffered by these sectors in the first lockdown, finds a study conducted by the Economics and Statistics Department.
The highest loss was reported in the services sector — 59% this year against 57% in 2020. It was followed by the manufacturing sector — 55% this year against 52% last year.
The loss to the trade sector was also more this year, 40%, compared to 38% last year, says the report titled Impact of Covid-19 on unincorporated non-agricultural enterprises in Kerala, Quick Study Report-Phase II.
The report also finds that 5% of the enterprises in Kerala were permanently closed down and 4% temporarily downed shutters during the second spell of the pandemic.
These enterprises had survived the 2020 lockdown, but were unable to withstand the loss of business this year.
Relaxations helped reduce employment loss: Study report
Nearly half, 49%, of the closed enterprises and more than half, 57%, of temporarily closed enterprises were in the services sector.
Manufacturing and trade accounted for 26% and 25% of the enterprises closed down permanently.
Of the temporarily closed, 11% was from trade sector and 32% from manufacturing sector, says the report.
The loss of operational days between April and July during the lockdowns in 2020 and 2021 is approximately same, says report.
The report said the employment loss in the unincorporated sector was less during this year’s lockdown.
Broadly, a 74% loss was recorded in employment in April 2020 as the state was in complete lockdown.
Data for the subsequent months showed that the relaxations offered by the government helped the enterprises reduce their employment loss gradually.
In the beginning of the 2021-22 financial year, employment loss of enterprises was 32%. The employment loss was 51% and 45% in May and June, respectively, this year.
The percentage loss in July this year was 33, which showed the enterprises benefitted from the lockdown relaxations, the report said.