Layoffs, Furloughs & Unemployment as COVID-19 Hits Retail Jobs

The COVID-19 crisis has led to a spike in the country’s unemployment rate from under 7 percent before the start of the pandemic in mid-March to 27.11 percent. The rate of unemployment has been the highest in urban areas – which constitute the most number of red zones – at 29.22 percent, as against 26.69 percent for the rural areas…

- Sandeep Kumar

India went under lockdown on March 23, 2020, plunging its economy into darkness, the economic outlook very bleak owing to the COVID-19 virus. So far, over the last 3 months, the country has witnessed four phases of lockdown and a less restricted phase termed as ‘Unlock 1.0’ which is currently underway and is expected to be functioning till June 30.

These 10 weeks have been nothing short of devastating for the retail and shopping centre industry in the country, which has registered losses, forced shutdowns and layoffs. With shopping malls, retail stores, factories and other small scale business ventures remaining closed, economic activity coming to a grinding halt, and revenues falling drastically, it has been a virtual job bloodbath.

Millions of migrants (skilled and unskilled labour, associates and staff working in retail stores etc.) have left urban centres – including Delhi and Mumbai – and heading back to their native places since they were no longer employed

Job cuts have been swift and brutal. Standalone stores have reduced the number of retail staff, delivery executives have been furloughed, and a large chunk of workers in the supply chain industry and at the backend level have been put on leave without pay. Salons and spas, which are by their very nature, contact businesses, have also witnessed ruthless manpower slashing.

The worst-hit perhaps has been the F&B industry which has cut many jobs and whose workers don’t hope to get their jobs back because even with the lockdown over, restaurants will only be allowed to work on half seating capacity. Less consumers allowed inside eateries, coupled with a low number of people who will turn up in any case fearing contagion will in any case mean less revenue and a need for minimal manpower.