Urban unemployment rose to 9.81 per cent from 8.51 per cent during the same period, while in rural areas, it fell marginally to 7.34 per cent in April from 7.47 per cent a month ago.
“The unemployment rate increased owing to a rise in the labour participation rate,” CMIE head Mahesh Vyas wrote in a column in a top business daily.
India’s labour force increased by 25.5 million people to 467.6 million in April, possibly due to an “increase in optimism about finding employment,” taking the labour participation rate to 41.98 per cent in April, the highest in three years, he added.
About 87 per cent of this expanded labour force could secure employment as an additional 22.1 million jobs were created in the month.
CMIE data showed more jobs were created in rural areas. Around 94.6 per cent of the people who joined the rural labour force became employed, while only 54.8 per cent of job seekers in urban areas found new jobs.
Fibre2Fashion News Desk (DS)