Confidence in the economy continued to stay low among customers in November regardless of a marginal enchancment from an all-time low recorded in September. The destructive notion of the economy elevated sharply among salaried workers.
This could possibly be resulting from the indisputable fact that most jobs misplaced in April resulting from the COVID-19-related lockdown have been regained in July, besides in the case of salaried workers. Compared to October, the variety of employed individuals decreased by over 3.5 million in November, reversing the restoration post-lockdown.
Low on confidence
The destructive notion among customers about the economy, revenue, employment, and worth ranges continued to persist in Nov. 2020 after peaking in Sept. 2020. The graph depicts the % of respondents who gave a selected reply in the RBI shopper confidence survey.
In Nov. 2020, 79.5% respondents mentioned the employment state of affairs had worsened and 63% mentioned revenue ranges had decreased in comparison with Nov. 2019.
The destructive notion of the economy elevated the most among salaried workers. From simply 14% of salaried workers who felt that their family revenue had worsened in comparison with a yr in the past in July 2019, the share went as much as 58% in July 2020. The enhance of 44 % factors is the greatest enhance among all sorts of workers.
In April, job losses have been increased among small merchants and entrepreneurs than among salaried workers. By July, most of those that had misplaced jobs among the first two classes regained employment, however losses persevered among salaried workers. CMIE knowledge infer that salaried staff have been much less prone to lose jobs but additionally unlikely to regain misplaced jobs.
After a steep fall in the variety of individuals employed post-lockdown, the job market initially revived at a brisk tempo. However, it slowed down considerably since July and declined marginally in October and November 2020.
Source: CMIE, RBI shopper confidence survey