India's Unemployment Rate Zooms to 1-Year High of 8.3% in Aug: CMIE
Mumbai: India's unemployment rate surged to a one-year high of 8.3% in August as employment sequentially fell by 2 million to 394.6 million, according to data from the Centre for Monitoring Indian Economy (CMIE).
During July, the unemployment rate was at 6.8% and the employment was 397 million, the CMIE data added.
"The urban unemployment rate is usually higher at about 8% than the rural unemployment rate, which is usually around 7%. In August the urban unemployment rate shot up to 9.6% and rural unemployment rate also increased to 7.7%," CMIE managing director Mahesh Vyas told PTI.
Vyas further stated that erratic rainfall affected sowing activities and this is one of the reasons for the increase in unemployment in rural India.
The unemployment rate in rural India rose from 6.1% in July to 7.7% in August. More importantly, the employment rate fell from 37.6% to 37.3%.
"Going forward, the rural unemployment rate may come down as delayed monsoon will increase agricultural activities towards the end of the monsoon season. However, it is not clear how the urban unemployment rate will play out in the coming months. Currently, it is quite elevated," Vyas added.
During August, the unemployment was the highest in Haryana at 37.3% followed by Jammu and Kashmir at 32.8%, Rajasthan at 31.4%, Jharkhand at 17.3% and Tripura at 16.3%, according to the data.
While the unemployment was the lowest in Chhattisgarh at 0.4% followed by Meghalaya at 2%, Maharashtra at 2.2% and Gujarat and Odisha at 2.6%, the data showed.
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