Employment rate in June lowest of last year, says CMIE


NEW DELHI: Employment in India fell the most during a non-lockdown period in June, likely as uneven monsoon rains delayed the deployment of agricultural labor to rural areas.
Data released by the Indian Economy Monitoring Center showed the unemployment rate jumped to 7.8% of the total labor force in June from 7.12% in May.
The decline was entirely due to rural unemployment rising to 8.03% from 6.62% in May, while urban unemployment fell to 7.30% in June from 8.21% a year ago. a month.
Overall employment fell by 13 million to 390 million in June, compared with a gain of 8 million jobs in April and May, according to CMIE data.
While around 13 million jobs were lost during the month, the number of unemployed increased by only 3 million as the rest left the labor market, wrote Mahesh Vyas, chief executive of CMIE, in an article published Tuesday in the Business Standard newspaper.
This contraction brought the activity rate to its lowest point at 38.8%, against 40% in the two previous months. While this sharp drop in employment and an equally steep deterioration in key labor market ratios are alarming, the deterioration in the labor market is not widespread across the country, Vyas wrote.
Rains were recorded at 32% below normal, which could have “slowed down the deployment of labor to the fields”, he said, adding that labor participation The artwork may improve as the monsoon picks up in the coming weeks.
The agricultural sector lost almost 8 million jobs in June, mainly related to plantations. However, the cultivation of crops created 4 million jobs, which was lower than the same period in 2020 and 2021, according to Vyas.


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