10.05% Unemployment Rate in October Highest in 2 Years

Unemployment rate jumped to the highest in more than two years in October as rural joblessness increased, according to private research firm Centre for Monitoring Indian Economy (CMIE).

Unemployment rate increased to 10.05% last month from 7.09% in September, the highest since May 2021, with rural joblessness jumping to 10.82% from 6.2%, Bloomberg reported. The rate in urban eased decreased slightly to 8.44%.

Unemployment rate increased as the weakest monsoon in five years impacted agriculture. Though in urban areas, manufacturing and consumption expanded.

Though the government publishes the countrywide Periodic Labour Force Survey (PLFS) annually, economists are increasingly relying “on the CMIE data for a better assessment of the labour market”, according to Bloomberg.

As per the October PLFS, the unemployment rate in 2022-2023 was 3.2%. In rural areas, the labour force participation rate increased from 50.7% in 2017-18 to 60.8% in 2022-23 while for urban areas it rose from 47.6% to 50.4%.

The worker population ratio for persons of 15 years and above in rural areas increased from 48.1% in 2017-18 to 59.4% in 2022-23 while for urban areas it increased from 43.9% to 47.7%, according to the survey. Besides, the trend in unemployment rate for persons of 15 years and above in rural areas decreased from 5.3% in 2017-18 to 2.4% in 2022-23 while for urban areas it decreased from 7.7% to 5.4%.

The CMIE data shows nearly 10 million people entered the job market in October in the hopes of finding some work, according to Bloomberg.

A report released by Lokniti-CSDS in August found that 36% Indians in the 15-34 age group believe that unemployment is the biggest problem before the country. About 16% think it is poverty and 13% inflation, The Indian Express reported in August.

The survey, conducted in 18 states with a sample of 9,316 respondents, shows unemployment as a significant concern across all economic classes, especially middle-class youth.

The percentage of youth who feel unemployment is the biggest problem increased by 18 percentage points from the results of a similar survey in 2016.

As per the survey, 40% of highly educated youths (graduate and above) identified unemployment as the most pressing concern compared to only 27% of non-literate individuals.