Following a considerable drop in rural unemployment, India’s unemployment rate fell sharply in January to 6.57 percent, the lowest since March 2021. In December, the jobless rate jumped to 7.91 percent, up from 6.97 percent in November.
This could be due to the relaxation of Covid restrictions, which began on January 15 when the number of cases in large states began to fall.
After an increase in instances of the Omicron coronavirus variety and social distancing measures in many areas, the South Asian nation’s economy and consumer morale have taken a knock.
According to data from the Centre for Monitoring Indian Economy, India’s jobless rate reached a four-month high in December (CMIE).
Many experts are concerned that the Omicron version will undo the previous quarter’s economic recovery.
Because the government does not release monthly figures, economists and policymakers pay special attention to the CMIE data on unemployment.
Rural unemployment in January fell to 5.84 percent, down from 7.28 percent in December 2021, according to data from the Centre for Monitoring Indian Economy (CMIE), while urban unemployment was 8.16 percent, down from 9.30 percent in December.
In January, Telangana had the lowest unemployment rate (0.7 percent), followed by Gujarat (1.2 percent), Meghalaya (1.5 percent), Odisha (1.8 percent), and Karnataka (2.9 percent).
This is believed to have resulted in a considerable reduction in India’s unemployment rate. According to the CMIE, there were 53 million unemployed people in India in December 2021, with a large proportion of them being women.
According to the CMIE, 35 million were unemployed and actively looking for work, whereas 17 million were eager to work but not actively looking for it.
According to CMIE, women made up 23 percent (8 million) of the 35 million unemployed who were actively looking for work in December 2021. At the same time, although not actively looking for work, 53 percent of the 17 million passively unemployed women, or 9 million women, were willing to work.
However, Haryana remained the state with the highest unemployment rate of 23.4 percent, followed by Rajasthan (18.9%), Tripura (17.1%), Jammu, and Kashmir (15%), and Delhi (14.1%).
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