Courtesy-Mint
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With a six week low of 8.7 per cent, India’s unemployment rate has improved as falling coronavirus infections lead states to relax lockdown crumbs and some parts of the country get covered with rains. Easing of restrictions on operations in the informal sector as well as withdrawal of people from the workforce in the absence of decent jobs is stated as a reason for the recovery by economists.
On June 13, the weekend report, the urban unemployment dropped to 9.7 per cent against the 14.7 per cent rate of monthly unemployment in May, as per the data available with the Centre for Monitoring Indian Economy (CMIE). If the fresh weekly numbers are compared with the previous week, the drop is more prominent. Less than the 17.88 per cent rate in the week ended May 30, the urban unemployment rate in the last week is 8.18 percentage points less, and 3.6 percentage points less than the week ended June 6. The job loss rate improved to 2.4 percentage points in the week ended June 13 to 8.23 per cent in rural areas as compared with the monthly figures of May of 10.63%.
According to a report by the Centre for Monitoring Indian Economy (CMIE), India had a national unemployment rate of almost 12 per cent in May. Some 7.35 million jobs were erased by a 7.97 per cent unemployment rate in April along with 3.4 million salaried jobs.