West Bengal joblessness rate dips below pre-pandemic levels

KOLKATA: A year after joblessness in Bengal had soared to a record 22.1% in June 2021, the unemployment rate in the state has plunged to 5.2% in June 2022, according to the Center for Monitoring Indian Economy (CMIE). That is not only lower than the national level but also less than pre-Covid count of 6.3% in June 2019 and 7.3% in June 2020.

The national average for June 2022 is 7.8%, lower than the 9.2% a year back.
Economists said the sharp rise and plunge in the past two years were owing to the pandemic that had initially led to huge job loss and the return of migrant labour to the state. As the Covid situation eased and the economy bounced back, the migrants workforce returned to their places of employment and fresh jobs were created, particularly in the micro, small & medium enterprises (MSME) sector.
The recent report by CMIE shows that the unemployment rate in Bengal has been on a steady decline over the past six months with minor spikes in between. This January, the unemployment rate in the state stood at 6.4%, dropping down to 6.2% in March and 5.2% in June.
In May-June last year, the unemployment rate in Bengal had soared to 19.3% and 22.1% respectively. "It was seasonal and short-term and could have been caused by reverse migration of workers from other states," said economist Abhirup Sarkar.
‘Unorganised sector, MSME absorbed workforce’
Unemployment in Bengal soared to 22. 1% in June last year but fell sharply after that and remained on a par with, or lower than, the national average, according to the Center for Monitoring Indian Economy (CMIE).
Among other states, unemployment in June 2022 was the highest in Haryana at 30. 6%, followed by Rajasthan at 29. 8%, Assam at 17. 2%, J&K at 17. 2%, Bihar at 14% and Jharkhand at 12. 2%.
MP recorded the lowest unemployment rate for June, 2022 at 0. 5% followed by Chhattisgarh at 1. 2%, Meghalaya at 2. 3%, Gujarat at 3% and Karnataka at 3. 7%.
Kerala and Goa mirrored Bengal’s see-saw unemployment figures for the last two years. For Goa, the rate plunged from 17. 9% in June 2021 to 5. 5% in June 2022. For Kerala, the rate dropped to 5. 3% in June 2022 from 15. 8% in June 2021. But the rate for Maharashtra marginally rose to 4. 8% in June 2022 from 4. 3% in June 2021.
Saikat Sinha Roy, professor of economics at JU, said in the absence of large-scale industries in Bengal, the MSME and unorganised sectors have contributed to absorption of a section of the workforce, while those who came back, might have moved out again.
CMIE does not count the workforce that has gone out of a state in search of work.
Economist Abhirup Sarkar stressed that small and medium enterprises have contributed towards generating jobs in the state. The growth of bank loans to the MSME sector is also an indicator of sectoral growth. Economist Dipankar Dasgupta said sectors like tourismhave been doing well over the past few years.
There, however, remains a concern due to the decline in 100-day jobs in the state. The state has alleged the Centre has not been releasing funds under the MGNREGA scheme.