India's unemployment rate down to 6.95% in July

03
Aug '21
Pic: Shutterstock
The unemployment rate in India has dropped to a four-month low in July to 6.95 per cent from 9.17 per cent in June, as the country gradually recovers from the impact of the second wave of the COVID-19 pandemic. The unemployment rate in rural areas fell to 6.34 per cent, while that in urban areas was 8.30 per cent in July, down from 10.07 per cent in June.

The unemployment rate was the highest in May 2021 in the last one year, as it had increased to 11.90 per cent, according to the Centre for Monitoring Indian Economy (CMIE). The urban unemployment rate in the same month had shot up to 14.73 per cent, due to the severe effects of the second wave of the pandemic.

As of the week ended July 25, the employment rate was 38.2 per cent, just a little short of the 38.5 per cent level in the week ended March 28.

“India’s economic recovery from Covid-19 shocks is V-shaped. The recovery is rapid, but it peters out before it is complete. Every shock, it seems, leaves a little transaction cost behind. India can therefore choose to celebrate the rapid recovery from the excruciating pain of lockdowns or bemoan the steady erosion of well-being and growth potential,” Mahesh Vyas, MD and CEO of CMIE, said on the CMIE website.

Fibre2Fashion News Desk (KD)


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