- Hindi News
- Trade
- India unemployment rate highest level; Center for Monitoring Indian Economy (CMIE) data updated
new Delhi6 hours ago
- copy link
India’s unemployment rate rose to a six-month high of 8.1% in February, falling to a 10-month low of 6.57% in January. The unemployment rate in India stood at 8.1% last month, according to data released by the Center for Monitoring Indian Economy (CMIE).
Last month, unemployment in villages was at a record 8-month high. According to CMIE data, joblessness in villages increased by 2.51% to 8.35% in February 2022. In contrast, however, the unemployment rate in cities stood at 7.55% last month, a four-month low.
Recovery in cities but lack of MNREGA budget increases unemployment in villages
Labor sector experts say that the unemployment rate in cities is coming down due to the easing of lockdown restrictions and a faster recovery in both the formal and informal sectors. The unemployment rate of the cities stood at 8.2% in November 2021, 9.3% in December 2021, 8.16% in January 2022 and 7.55% in February 2022.
According to experts, the lack of MGNREGA budget in some states and limited availability of new jobs in the non-farm sector in villages led to a jump in the unemployment rate in villages and reached an eight-month high in February.
The unemployment rate reached 11.84% in May
According to CMIE, the unemployment rate reached 11.84% in May 2021. Although after this there was a decline and it came to 6.57% in January 2022, but now it has started increasing again.
Unemployment rate reflects the health of the economy
According to CMIE, the unemployment rate accurately reflects the health of the Indian economy, because it tells how many unemployed people are in the total population of the country. The think tank expects the start of sowing of the Rabi crop to see a spurt. This means that the agri sector will once again perform well in the current financial year. Due to this the migrant laborers will return to the fields.
How is the unemployment rate determined?
The unemployment rate at 8.1% in December means that 81 out of every 1000 workers willing to work could not find work. CMIE conducts door-to-door survey of people above 15 years of age every month and inquires about their employment status. After that a report is prepared from the results obtained.