Unemployment rate falls to six-month low of 5.98%

Therefore, one year after the onset of Covid, India was left with a shortfall of 6.3 million jobs.”

Unemployment rate fell to a six-month low of 5.98% for the week ended July 18 after inching up to 7.64% in the previous week. During the week ended July 18, the rate of joblessness fell in both urban and areas to 7.9% and 5.1% from 8.9% and 7.06%, respectively, in the previous week, according to the Centre for Monitoring Indian Economy (CMIE)

CMIE’s MD and CEO Mahesh Vyas said: “It is heartening to see the unemployment rate come down in the week ended July 18 as it comes with a near stable labour participation rate (LPR) and a healthy increase in the employment rate from 37.5% in the previous week to 38% in the latest week.” For the week ended July 4, employment rate was 36.6%.

LPR is an age-specific proportion between persons either working or actively seeking work and the total population in working age group, usually 15 years and above. Unemployment rate is a ratio between persons who are not currently in job but are actively searching for one and the total labour force.

Monthly unemployment rate in June fell to 9.17% from 11.9% in May this year. In a recent article, Vyas wrote, “Employment during the quarter ended March 2020 was 406 million. In the quarter ended March 2021, employment is estimated at 399.7 million. Therefore, one year after the onset of Covid, India was left with a shortfall of 6.3 million jobs.”