Payment companies predominantly operating in the hinterland are seeing early signs of the return of migrant labour to urban pockets in search of employment. While the spread of the virus has stabilised in large cities, unexpected lockdowns in rural pockets to control the pandemic have affected their travel to cities that typically absorb surplus farmhands.
Data showed that remittances from labour hubs like Madurai, Surat, Jaipur, Faridabad, Jamshedpur, and Lucknow have seen a surge, with flows nearly back to levels seen before the pandemic. That is likely reflective of a return to normality in several geographies with significant economic impact.
“We are seeing early signs that migrant labour is returning to urban pockets for employment opportunities, especially as the virus recedes in large cities like Mumbai and Delhi, where economic activity is slowly picking up,” said Rishi Gupta, CEO, Fino Payments Bank. “The reason is very clear that this workforce returned to escape the virus that is now spreading in rural pockets. Unexpected mini lockdowns are causing disruption. Government cash schemes have run their course; so it’s crucial for them to return, seeking employment opportunities. Also, the free food distribution scheme, which is ongoing until November, will take care of their families’ basic requirements.”
Source: Economic Times
