Risk-reducing strategies and labour vulnerability during the pandemic in India

The Covid-19 health disaster has created a labour crisis. We examine the impact of the Covid-19 induced state-level direct (such as providing free food, minimum income, and transportation services for the labourers) and indirect (such as skill mapping of the return migrants and allowing extended hour shifts in the factories) risk-reducing labour strategies on urban and rural employment rates in India. These risk-reducing labour strategies secure livelihood and discourage labourers from risking their lives by joining the workplace of high interpersonal human contact during the pandemic. This reduces employment rates. Specifically, direct risk-reducing labour strategies reduce employment in urban and rural areas, while indirect risk-reducing labour strategies lessen employment only in urban areas. The mitigating effect justifies the importance of the Keynesian interventionist resilience techniques that safeguard the labourers and reduce the risks during the disaster.