At 6.80%, unemployment rate in India lowest in 6 months: Report
The unemployment rate in India dropped to a six month low on account of a boost in the agriculture sector due to steady monsoon rains.
The overall unemployment rate eased to 6.80% in July, a 1 per cent decline compared to June, the lowest since 6.56% in January, Centre for Monitoring Indian Economy(CMIE), a private organisation reported on Monday.
In rural India, the unemployment rate fell to 6.14% in July against 8.03% in the previous month. The reason for this growth is cited in 9% above normal rainfall registered in July end. The rural jobless rate increased last month as rains were below normal and patchy in June as per data.
The month of June marks the advent of the southwest monsoon over the Indian subcontinent. During this period of Kharif season, crops can face setbacks on account of a slow monsoon progress.
The data for urban areas suggests that unemployment rose in July to 8.21% against 7.30% in June, a pattern hinting that this growth may only be a short term relief for India. Any uncertainty or adverse monsoon pattern could reverse this trend impacting farm jobs in the sector again.
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CMIE had earlier reported that the total employment in India fell to 390 million in June 2022, the lowest record since July last year.
“The June debacle was essentially a rural phenomenon and the fall was located largely in the informal markets. This could largely be a labour migration issue and not a larger economic malaise,” CMIE had said.
(With inputs from Bloomberg)