Nearly -8 million increase in labor participation is a sign that the economy is doing well, says CMIE’s Vyas
Nearly -8 million increase in labor participation is a sign that the economy is doing well, says CMIE’s Vyas
India’s unemployment rate declined sharply in September due to an increase in labor participation in rural and urban areas, according to data from the Center for Monitoring Indian Economy (CMIE).
During August, India’s unemployment rate hit a one-year high of 8.3% as employment fell by 2 million sequentially to 394.6 million.
CMIE Managing Director Mahesh Vyas told PTI over phone on Saturday, “With the increase in labor participation in both urban and rural areas, the unemployment rate has come down significantly in September.”
According to the data, the unemployment rate in rural areas fell to 5.84 per cent in September from 7.68 per cent in August, while in urban areas it declined to 7.7 per cent from 9.57 per cent in the previous month.
Shri Vyas said that the increase in labor participation by about 8 million is an indication that the economy of the country is doing well.
According to CMIE data, Rajasthan had the highest unemployment rate at 23.8% in September, followed by Jammu and Kashmir at 23.2%, Haryana at 22.9%, Tripura at 17%, Jharkhand at 12.2 per cent and Bihar at 11.4 per cent.
The data showed that Chhattisgarh had the lowest unemployment rate of 0.1% in September, followed by Assam at 0.4%.
In August, the unemployment rate hit a one-year high as erratic rainfall, which affected sowing activities, hit employment in rural India. CMIE data shows that the urban unemployment rate rose to 9.6% in that month, while rural unemployment also rose to 7.7%.