In the three months after Lehman Brothers’ collapse in September 2008, at least five lakh Indian workers have lost their jobs, a recent Labour Ministry survey found. Workers in the gems and jewellery sector were the worst affected.

About 93 per cent of India’s workforce is in the unorganised sector with no social security cover. The Labour Ministry assessed the ground realities in Surat, India’s largest cluster of gems and jewellery units, in consultation with the city’s district collector, police commissioner and the Gujarat administration and its findings were shared with the PMO late last month. The Sunday Express has a copy of the report, which reveals the ripple effects of job losses on the economy.

• Most gem and jewellery units haven’t opened or functioned ‘normally’ since Diwali—the 2,500-3,000 large diamond units employed about 4 lakh workers, half of whom have lost their jobs.

• There were 10,000 unregistered units employing 5 to 7 workers each, not covered by the Factories Act or any social security scheme. Their annual Diwali break was at least 45 days in 2008, as opposed to the usual 25 days. The labour commissioner and state officials had to intervene to restart 135 units.

• Nine diamond workers have committed suicide, according to the police commissioner. The Rural Labour Commissioner’s social security insurance scheme does not cover suicides.

• About 75 per cent of workers in the city are migrants under 35. Most have left the city after losing their jobs.

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