Unemployment rate in India rises sharply since September, crosses 9 percent in December
Nearly, 0.73 million new members had been added to the schemes run by the EPFO in October, against the 0.98 million in September.
Representational image. News18
The unemployment rate in India has increased sharply since September, and stood at 9 percent on a 30-day moving average basis on 20 December. This data was revealed by the Centre for Monitoring Indian Economy (CMIE). This is the highest level of joblessness in India since the COVID-19 pandemic. The unemployment rate had jumped to 8 percent in November, which is its highest level since August, when it had reached 8.28 percent. The rate was 6.43 percent in September and 7.77 percent in October. According to CMIE, the unemployment rate is the number of unemployed individuals who are willing to work and looking for a job actively as a fraction of the labour force.
The CMIE all-India joblessness rate had jumped to a peak of 23.52 percent in April, 2020. This was the period of lockdown due to the pandemic. After this, the rate declined, however, it rose again to 11.84 percent in May, 2021. The 30-day trailing unemployment rate has never gone above 9.1 percent since 1 July, 2021. According to a report by Financial Express, labour market experts say that even as more individuals are making entry in the workforce, the job availability is not keeping pace with it.
On Tuesday, payroll data issued by Employees’ Provident Fund Organisation (EPFO) also indicated a slowdown in the formal sector job creation. This implies the slowing of economic momentum.
Around 0.73 million new members had been added to the schemes run by the EPFO in October, against the 0.98 million in September. The addition of new members has been declining after reaching a high of 1.15 million in July 2022.
The number of households making demands for work under Mahatma Gandhi National Rural Employment Guarantee Act rose to 18.5 million in November. The figure stood at 15.5 million in October.
Santosh Mehrotra, labour economist and retired Jawaharlal Nehru University (JNU) professor noted, “Economic growth has not revived, exports have fallen.” He went on to add that Micro, Small and Medium Enterprises (MSMEs) have been performing poorly since 2016. He further said that individuals who have returned to urban areas from rural areas are still seeking work or only finding low-level jobs.
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