According to the Centre for Monitoring Indian Economy (CMIE), India’s unemployment rate increased to 7.45% in February, up from 6.98% in January. The country is still struggling to recover from the economic impact of the COVID-19 pandemic. The data released by the CMIE suggests that there has been a significant increase in the unemployment rate over the past few months.
The report indicates that the unemployment rate among urban areas increased to 9.15%, while in rural areas, it was 6.52%. The rate among women was 8.36%, and among men, it was 7.12%. The youth unemployment rate (15-29 years) was 23.4%.
The report highlights that the increase in unemployment is a result of the pandemic’s impact on the economy, particularly the labour-intensive sectors. The CMIE report further suggests that the labour force participation rate has also decreased from 40.5% in January to 40.2% in February.
The data reveals that the rural unemployment rate is still lower than the urban unemployment rate, but the gap between them has narrowed. In January, the rural unemployment rate was 6.98%, and the urban rate was 9.78%. In February, the rural rate increased to 6.52%, while the urban rate rose to 9.15%.
The CMIE report suggests that the labour market continues to face significant challenges. The report states that the employment rate, which is the percentage of the population that is employed, has decreased from 37.9% in January to 37.7% in February. The report indicates that the pandemic’s impact on the economy has been particularly severe for the low-skilled workers, who have been hit the hardest.
In conclusion, the CMIE report shows that the Indian labour market is still struggling to recover from the impact of the pandemic. The rise in the unemployment rate in February indicates that the economy’s road to recovery is still long and challenging. The report highlights the need for policymakers to focus on creating jobs and boosting economic growth to address the unemployment crisis in the country.