New Delhi: After witnessing a sharp decline in the employment rate in June 2022, economic think-tank Center for Monitoring Indian Economy (CMIE) has estimated that the trend is reversing in the current month. In the last three days of the month from July 12, the unemployment rate is decreasing gradually to 7.29 per cent on July 14, 7.46 per cent on July 13 and 7.33 per cent on July 12.
In June 2022, the all-India unemployment rate was 7.80 percent, urban 7.30 percent and rural 8.03 percent. (Also Read: Internationalization Of Rupee Will Improve Current Account Deficit, Reduce Currency Risks: PHDCCI President Pradeep Multani)
Responding to this, economist Abhirup Sarkar said that this could be due to seasonal changes or errors in sample collection by the agency. (Also read: Finmin seeks industry opinion on changes in monthly GST payment form)
According to the data, the all-India unemployment rate in June stood at 7.80 percent, urban 7.30 percent and rural 8.03 percent. Last month the all-India unemployment level stood at 7.12 per cent.
CMIE said India’s labor figures for June 2022 have been extremely disappointing. Employment declined from 404 million in May 2022 to 390 million in June 2022.
The agency said this showed labor markets had shrunk in June, with 3 million being added to the labor force. In the past month, the labor force has decreased by 10 million.
CMIE said the large-scale exit of labor shows that the labor participation rate (LPR) has come down to the lowest level at 38.8 per cent, from 40 per cent in the last two months.
According to the agency, the fall in LPR was seen more in rural areas. With the onset of monsoon in the coming weeks, a revival in rural employment is expected among agricultural labourers.
CMIE also reported that around 2.5 million jobs among the salaried class saw a decline in June 2022. According to the think-tank, the vulnerability of salaried jobs has been exposed in this way. The only savior is that the economy has to grow at a faster rate to generate jobs, it said. State-wise unemployment figures in West Bengal stood at 5.2 per cent, with Haryana topping the list at 30.6 per cent.