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Unemployment rate in India rose to a one year high in August this year, according to the data published by the Centre for monitoring Indian economy (CMIE).
According to the CMIE, the Unemployment rate in India rose to 8.28 per cent in August from a low of 6.8 per cent in July.
This is the highest since August 2021, when it touched 8.32 per cent. Previously, it breached the eight per cent mark in February this year, when it rose to 8.11 per cent.
Urban unemployment rate jumped to 9.57 per cent in August as against 8.21 per cent in July. Rural joblessness also increased but remained lower than urban unemployment rate at 7.68 per cent in August. Rural unemployment was at 6.14 per cent in July 2022.
Not enough jobs
“India has generated less jobs compared to the number of people who joined the labour force. In August, four million people came into the labour force compared to July. The Indian economy couldn’t produce so many jobs,” said Mahesh Vyas, Managing Director and CEO, CMIE.
As many as 2.6-million jobs were shed.
There is a marginal improvement expected in September as agriculture should employ more people in the month, Vyas told BusinessLine, attributing this to the fact that agricultural activities have been delayed this year.
Amongst States, unemployment rate was highest in Haryana at 37.3 per cent in August, followed by Jammu and Kashmir (32.8 per cent) and Rajasthan (31.4 per cent). It was in double digits in States like Jharkhand (17.3 per cent), Tripura (16.3 per cent), Goa (13.7 per cent) and Bihar (12.8 per cent).
The data is significant given that economic activities have normalised post the Covid lockdowns and consumer demand also remains high. India’s GDP grew by 13.5 per cent in the first quarter of the current fiscal.
PLFS data
The Periodic Labour Force Survey however, revealed that the unemployment rate for persons aged 15 years and above in urban areas dipped for the fourth straight quarter to 7.6 per cent during April to June 2022. It stood at 8.2 per cent between January and March 2022 and was much higher at 12.6 per cent in the April to June 2021 quarter due to Covid-led restrictions.
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