Rising unemployment causing weak labour market recovery
The Centre for Monitoring Indian Economy said that the labour market in India continues to be under stress due to the fall in the employment rate in rural India and the continued low employment rate in urban India. The employment rates in the country stood at 37.6%, 37.5% and 37.9% in the first three weeks of October respectively. These are lower than 38% recorded in September. Meanwhile, the employment rate stood at 39.4% in 2019-20.
The average rural employment rate stood at 39.1% in the first three weeks of October, against 39.8% in September, which was.its highest level since the imposition of the lockdown. Meanwhile, the average employment rate in urban India was 34.8%. Although this was an improvement over 34.4% in September, it was still over 200 basis points lower than the 2019-20 level.
The organisation also stated that rural India has a much larger weight in all-India estimates, it is imperative to arrest this fall. “To merely keep the employment rate unchanged, the economy has to generate additional jobs. It needs to run to stay where it is,” it opined.