MUMBAI: The country’s unemployment rate fell to 6.80 per cent in July, the lowest level in the past six months, amid rising agricultural activity during the monsoon, according to the Center for Monitoring Indian Economy.CMIE) information.
CMIE data said the unemployment rate declined to 6.80 per cent in July, from 7.80 per cent in June.
Rural unemployment declined 6.14 percent to 272.1 million last month, from 265.2 million or 8.03 percent in June.
Urban unemployment, on the other hand, rose to 8.21 percent in July, from 7.80 percent in June, as the number of jobs fell in both industry and services.
employment According to CMIE data, urban India declined by 0.6 million, from 125.7 million to 125.1 million.
CMIE Managing Director and CEO Mahesh Vyas said the month-on-month improvement in employment was partly as the decline in June was 13 million, compared to an increase of only 6.3 million jobs in July.
The recovery took place mainly in rural areas and especially in agriculture as the southwest monsoon progressed and kharif sowing activities gained momentum.
Vyas said the agriculture sector in the rural sector absorbed an additional 9.4 million workforce in July, while it decreased by 8 million in June.
This lower-than-expected absorption of labor into agriculture in July reflects the poor progress of the southwest monsoon and similarly poor kharif sowing this year.
Vyas said the rains have been very poor in Uttar Pradesh and Bihar so far this year, with data available till the end of July showing a 13 per cent decline in rice cultivation, mostly in Bihar, Uttar Pradesh and West Bengal.
“Unless the kharif sowing improves, we do not see improvement in rural employment. However, I am hopeful that there will be an improvement in monsoon going forward, which will have a positive impact on the employment scenario in rural areas,” Vyas said.
Meanwhile, urban unemployment rose to 8.21 per cent in July, from 7.80 per cent in June, as jobs fell in both industry and services, CMIE data said.
Vyas said the industrial sector lost 0.2 million jobs in July after losing 4.3 million during June, while the services sector lost 2.8 million jobs in July after losing 0.8 million in June.
Vyas said the industrial and service sectors have been losing jobs for two months.
Vyas said employment in the industrial sector rose to 108 million in May, but has since dropped to 104 million in June and July.
Vyas said the improvement in industrial jobs was essentially in the construction industry and not in the manufacturing sector, which are of better quality.
Over 8 million non-farm jobs were lost during June and July, in both industry and service sectors alike.
“There is a need to invest more, which is likely to take some time. However, we do not expect any deterioration in the unemployment scenario in the country,” Vyas said.
CMIE data said the unemployment rate declined to 6.80 per cent in July, from 7.80 per cent in June.
Rural unemployment declined 6.14 percent to 272.1 million last month, from 265.2 million or 8.03 percent in June.
Urban unemployment, on the other hand, rose to 8.21 percent in July, from 7.80 percent in June, as the number of jobs fell in both industry and services.
employment According to CMIE data, urban India declined by 0.6 million, from 125.7 million to 125.1 million.
CMIE Managing Director and CEO Mahesh Vyas said the month-on-month improvement in employment was partly as the decline in June was 13 million, compared to an increase of only 6.3 million jobs in July.
The recovery took place mainly in rural areas and especially in agriculture as the southwest monsoon progressed and kharif sowing activities gained momentum.
Vyas said the agriculture sector in the rural sector absorbed an additional 9.4 million workforce in July, while it decreased by 8 million in June.
This lower-than-expected absorption of labor into agriculture in July reflects the poor progress of the southwest monsoon and similarly poor kharif sowing this year.
Vyas said the rains have been very poor in Uttar Pradesh and Bihar so far this year, with data available till the end of July showing a 13 per cent decline in rice cultivation, mostly in Bihar, Uttar Pradesh and West Bengal.
“Unless the kharif sowing improves, we do not see improvement in rural employment. However, I am hopeful that there will be an improvement in monsoon going forward, which will have a positive impact on the employment scenario in rural areas,” Vyas said.
Meanwhile, urban unemployment rose to 8.21 per cent in July, from 7.80 per cent in June, as jobs fell in both industry and services, CMIE data said.
Vyas said the industrial sector lost 0.2 million jobs in July after losing 4.3 million during June, while the services sector lost 2.8 million jobs in July after losing 0.8 million in June.
Vyas said the industrial and service sectors have been losing jobs for two months.
Vyas said employment in the industrial sector rose to 108 million in May, but has since dropped to 104 million in June and July.
Vyas said the improvement in industrial jobs was essentially in the construction industry and not in the manufacturing sector, which are of better quality.
Over 8 million non-farm jobs were lost during June and July, in both industry and service sectors alike.
“There is a need to invest more, which is likely to take some time. However, we do not expect any deterioration in the unemployment scenario in the country,” Vyas said.