New Delhi: India’s unemployment rate That climbed to a four-month high, the latest data showed, as more people were joining the workforce than were available. jobs Asia’s third largest economy.
Creating enough jobs for India’s growing population will remain a key challenge for Prime Minister Narendra Modi’s government, especially as he looks to a third term in national elections next summer.
The nationwide unemployment rate rose from 7.8% in March to 8.11% in April, the highest since December. According to data from research firm Center for Monitoring India Economy, urban unemployment rose to 9.81% from 8.51% in the same period, while it fell marginally to 7.34% in rural areas from 7.47% a month earlier.
“The unemployment rate The increase is due to increase in labor participation rate,” Mahesh Vyas, Head CMIEWrote a column for a newspaper.
He said India’s labor force rose by 25.5 million to 467.6 million in April, possibly due to “increased optimism about finding jobs”, with the labor participation rate reaching 41.98% in April, the highest in three years .
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About 87% of this expanded labor force was able to secure employment as an additional 22.1 million jobs were created in the month. The employment rate rose to 38.57% in April, the highest since March 2020.
Vyas said, “The significant increase in LPR and employment rate in India in the month of April reflects the increase in desire for employment among the people.”
CMIE data shows that more jobs were created in rural areas than in urban areas. About 94.6% of those joining the rural labor force have been employed, while only 54.8% of seekers in urban areas have found a new job. CMIE’s findings corroborate the fact that the demand for the government’s employment guarantee program is falling in rural areas.
In its April bulletin, the Reserve Bank of India said that demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act has been slowing since January due to better sowing of winter crop and improvement in informal sector employment.
According to Gaurav Kapoor, chief economist at IndusInd Bank, rising labor force participation is the last phase of economic normalization since the pandemic. “It is a sign that normalization is happening, or has already happened,” he said.
Creating enough jobs for India’s growing population will remain a key challenge for Prime Minister Narendra Modi’s government, especially as he looks to a third term in national elections next summer.
The nationwide unemployment rate rose from 7.8% in March to 8.11% in April, the highest since December. According to data from research firm Center for Monitoring India Economy, urban unemployment rose to 9.81% from 8.51% in the same period, while it fell marginally to 7.34% in rural areas from 7.47% a month earlier.
“The unemployment rate The increase is due to increase in labor participation rate,” Mahesh Vyas, Head CMIEWrote a column for a newspaper.
He said India’s labor force rose by 25.5 million to 467.6 million in April, possibly due to “increased optimism about finding jobs”, with the labor participation rate reaching 41.98% in April, the highest in three years .
Read more:
About 87% of this expanded labor force was able to secure employment as an additional 22.1 million jobs were created in the month. The employment rate rose to 38.57% in April, the highest since March 2020.
Vyas said, “The significant increase in LPR and employment rate in India in the month of April reflects the increase in desire for employment among the people.”
CMIE data shows that more jobs were created in rural areas than in urban areas. About 94.6% of those joining the rural labor force have been employed, while only 54.8% of seekers in urban areas have found a new job. CMIE’s findings corroborate the fact that the demand for the government’s employment guarantee program is falling in rural areas.
In its April bulletin, the Reserve Bank of India said that demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act has been slowing since January due to better sowing of winter crop and improvement in informal sector employment.
According to Gaurav Kapoor, chief economist at IndusInd Bank, rising labor force participation is the last phase of economic normalization since the pandemic. “It is a sign that normalization is happening, or has already happened,” he said.