Unemployment rate falls sharply to pre-lockdown levels: CMIE Report

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The unemployment rate in India tumbled to its pre-lockdown level of 8.5% in the third week of June, from the peak rate of 23.5% in April and May due to lockdown. Center for Monitoring of Indian Economy (CMIE), indicated that the rural unemployment rate declined from 17.71% in the week finished 7 June to 10.96% in the week finished 14 June. In the pre-lockdown week, the job loss rate in rural India was 8.29% and in general, the joblessness rate was 8.41%.

Rural areas are seeing a major addition in employment unexpected increment in Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) exercises and furthermore by a sharp increment in Kharif planting this year. CMIE said rural may see greater increases in the months to come or if nothing else will sustain the current additions.

In its June 16 report, the CMIE featured that the fall in the joblessness rate accompanied an expansion in the Labour Participation Rate (LPR), which was recorded at 40.4% in the week finished June 14. In the week finished March 22 (not long before the burden of the national lockdown), the LPR remained at 42.6% yet tumbled to 39.2% in the primary seven day stretch of the lockdown and again to 36.1% in the principal seven day stretch of April and was at 35.4% in the week finished April 26. From that point forward, the LPR has been on the recovery way.

Essentially, India’s employment rate, which fell to  29.9% following the lockdown inconvenience and declined further to 26.1% in the week finished April 19, began ascending since early May. The work rate expanded 3.3% from  32.4% in the week finished June 7 to 35.7% in the week finished June 14.

Muralidharan Thyagarajan, director of TMI Group, a leading human resource organization said that “As per the survey findings, The long lockdown cleared out the independent workspace, and when the opening has gotten, this class of individuals is returning to gain their employment”. He added that even though surveys have its own limitations, we can analyze that “At least 75% of individuals are earning through agrarian work or easy-going employments. The absence of good employments can adversely affect the poor most and will push more individuals to destitution. The urban work is still high and it shows the worry in the formal sector jobs.