After witnessing a sharp decline in the employment rate in June 2022, the economic think tank Center for Monitoring Indian Economy (CMIE) estimated that the trend has reversed in the current month.
During the last three days of the month since July 12, the unemployment rate has gradually decreased to 7.29% on July 14, 7.46% on July 13 and 7.33% on July 12.
In June 2022, the unemployment rate across India was 7.80%, urban at 7.30% and rural at 8.03%.
Reacting to this, economist Abhirup Sarkar said it could be due to seasonal variations or errors in the agency’s collection of samples.
According to the data, the unemployment rate across India in June was 7.80%, urban at 7.30% and rural at 8.03%. In the previous month, the unemployment rate across India was 7.12%.
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The CMIE said India’s labor statistics for June 2022 had been very disappointing. Employment fell by 13 million, from 404 million in May 2022 to 390 million in June 2022.
The agency said this shows labor markets had shrunk in June, with three million people added to the labor force. Over the past month, the labor force has shrunk by 10 million.
The CMIE said the massive labor outflow shows that the labor force participation rate (LPR) has fallen to the lowest level at 38.8%, which was 40% in during the previous two months.
According to the agency, the drop in LPR was more pronounced in rural areas. The revival of rural employment should concern agricultural workers with an upsurge in the monsoon in the coming weeks.
The CMIE also pointed out that June 2022 also saw a decline of around 2.5 million jobs among the working class. According to the think-tank, the vulnerability of salaried jobs has thus been laid bare. The only savior is that the economy must grow at a faster rate to create jobs, he said.
Unemployment data by state shows West Bengal was at 5.2%, with Haryana leading at 30.6%.