Unemployment rate rises again to reach 7.14%

The rate reached its recent peak of 14.73% in the week ended on May 23. As the impact of the coronavirus ebbed and restrictions on mobility eased, overall unemployment rate showed signs of decline, but has again inched up.

Unemployment rate, as computed by the Centre for Monitoring Indian Economy (CMIE), increased to 7.14% for the week ended July 25 from 5.98% in the previous week. Both urban and rural areas contributed to the spike in joblessness.

Unemployment rate in urban areas increased marginally to 8.01% from 7.94% a week before; the rise was sharper in rural areas, from 5.1% to 6.75%.

The rate reached its recent peak of 14.73% in the week ended on May 23. As the impact of the coronavirus ebbed and restrictions on mobility eased, overall unemployment rate showed signs of decline, but has again inched up.

Unemployment rate was 7.4% for the week ended April 25 and 8.16% on April 4. The second wave of the pandemic hit towards the beginning of April.

Meanwhile, monthly unemployment rate in June fell to 9.17% from 11.9% in May.

In a recent article, CMIE MD and CEO Mahesh Vyas wrote, “The recovery in June notwithstanding, job losses compared to January 2021 were of the order of 17 million. Compared to 2019-20, the loss is a substantial 26 million. Covering such large gaps could take months if the June 2021 recovery is sustained.”