Demonetisation Effects – 4 lakh Jobs cuts

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Demonetisation Effects - 4 lakh Jobs cuts

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With the recent Demonetisation of Rs 500 and Rs 1000 notes, non-permanent jobs, especially in labour intensive sectors have taken quite a hit. Some of the sectors are like textile, leather, garments and jewellery . About 4,00,000 people, include mostly of daily wage workers, have either lost their job or quit work temporarily due to shortage of payment, says a senior industry executive . He also mentioned that the number will just keep going up if the cash flow doesn’t increase. Even after 18 days of Note Ban, a huge number of interesting developments are being reported from across the country. While some of them are revolutionary for employment according to business analysts.

Industry is looking at temporary job losses due to demonetisation, as production gets hit. Demonetisation affects the peoples especially in labour-intensive sectors like textiles, jewellery, leather and garments. An industry executives says that Approximately 4 lakh people may have either lost their jobs or avoided work temporarily due to the lack of payment so far. And the number is only going to grow if the cash crunch persists.

demonetisation-effects-4-lakh-jobs-cuts

4,00,000 Jobs may be lost due to Demonetisation :

Several peoples suffers Due to Demonetisation . Ravi Sehgal is the vice-chairman of Engineering Export Promotion Council (EEPC). He said “Some labourers are refusing direct payment through banks, even though they have bank accounts. They have a fear that the amount might exceed Rs.50,000 ( a year ) which will cause them to lose their below poverty line status, stripping them of subsidiary benefits.”  A majority of garment industry employees, especially in hubs, do not have a savings bank account there. Most of them (70%)  are migrant workers from the north and north – eastern parts of the country. Roughly a 5th of the almost 32 million people employed in the garment and textile sector who are paid either daily or weekly are hit. While some of them have already lost their jobs, many are worried of such a fate.

Rs 8 Lakh Crore would be Wiped Off  from Real Estate :

Due to demonetisation, 30% of the cost of the houses can be decreased. And the prices would be reduced across top 42 cities in India. It is assumed that real estate valuation in top 42 indian cities will drop from Rs 39.55 lakh crore to Rs 31.52 lakh crore in upcoming months. Facing a similar problem, about 20-25% of the 2.5 lakh daily paid workers in the leather industry are also affected. Since 90% of the industry is made up of small and medium enterprises, it has been hit the worst. About 15-20% of the daily wage workers in the jewellery sector have been affected as well.

 

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