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- CMIE Unemployment Rate Down To 8.7 Percent In Week Ended On 13 June 2021
New Delhi16 hours ago
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The decreasing cases of corona infection and the beginning of the unlock process in the states have started showing a positive effect on employment. As a result of this, people gradually started getting employment. According to data from the Center for Monitoring Indian Economy (CMIE), the country’s unemployment rate has come down to a 6-week low of 8.7% in the week ended June 13.
Getting employment due to the opening of the unorganized sector
Economists say that the unorganized sector has started giving relaxation in restrictions. This is the main reason for the recovery in employment. Apart from this, the unemployment rate is also improving due to the return of people doing other work in the absence of good jobs. According to CMIE data, the urban unemployment rate has come down to 9.7% for the week ended June 13. The urban unemployment rate stood at 14.7% in May from a month earlier.
Big drop in urban unemployment rate
If we compare the latest figures with the previous weeks, then this decline becomes quite significant. The urban unemployment rate stood at 17.88% for the week ending May 30. It has declined 8.18% in the week ended June 13. At the same time, there has been a decline of 3.6% compared to the week ended June 6.
Rural unemployment rate improved to 2.4%
Similarly, the rural unemployment rate has improved. The rural unemployment rate in May stood at 10.63%. At the same time, it has been 8.23% in the week ended June 13. Thus the rural unemployment rate has improved to 2.4% in the last two weeks. According to CMIE, the unemployment rate in the country was a little over 12% in May. The unemployment rate during January to April ranged from 6.52% to 7.97%. It remains above this level in June. The unemployment rate in the country stood at 7.97% in April. At this rate, 73.5 lakh people lost their jobs in April. This included 34 lakh salaried jobs.
In April, 2.3 crore people lost their jobs due to the second wave of Kovid.
Unemployment rate reached 23.52% in April 2020
Last year, a nationwide lockdown was imposed from 25 March 2020 to prevent corona infection. Due to this, the unemployment rate in the country reached a record high of 23.52% in April 2020. Thanks to the economic recovery, the unemployment rate fell to 6.52% in January 2021. But the second wave of Corona had a bad effect on the job market in April and May. In these two months, 2.3 crore people lost their jobs. This included both salaried and non-salary jobs.
Organized sector workers are getting help due to lifting of restrictions
Experts and economists say that the lifting of Corona-related restrictions is helping organized sector workers. Along with this, small businessmen are also starting work again. But the organized sector is struggling. The recovery of the organized sector is stuck on rising demand.
Satisfaction on these numbers will be too soon: Arup Mitra
Arup Mitra, professor of economics at Delhi University, says it is too early to be complacent on the latest unemployment rate numbers. We have to see what has happened in the last 10 days. Monsoon has arrived in these 10 days and some economic activities have gradually unlocked. Monsoon has a marginal impact on the urban labor market, but in the rural market, due to the monsoon, agricultural activities increase. This usually gives employment to a lot of people. Even if the yield is low.
In the second wave, temporary workers in the organized sector lost their jobs
Arup Mitra says that in the second wave of Corona, the regular or permanent workers of the organized sector faced minor problems. But temporary people in the organized sector lost their jobs. Now people doing temporary jobs in the organized sector are either returning to their villages or removing themselves from the labor market. Due to this also the unemployment rate is decreasing.
2% jump in employment rate
According to CMIE data, there has been an improvement of 80 basis points in the labor force participation rate in the week ended June 13 as compared to May 30. The labor force participation rate stood at 39.75% for the week ended June 13. Similarly, the employment rate has increased by 2% to 36.29% as compared to the week ended May 30.