India's December Unemployment Rate Surges To Four-Months High At 7.9%: CMIE
The urban unemployment rate increased to 9.3 percent in December from 8.2 percent in the preceding month.
The burning issue of unemployment in India has not gained the desired traction that it should, in the country's discourse in the past recent years. To one's utmost despise, trending hashtags on Twitter won't help create employment until the pressure groups do not put the government in a tight spot to address this issue immediately before it gets out of hand entirely!
Otherwise, people who are bracing themselves in the undergraduate colleges for the real world and the ones who are already wandering in search of a perfect ‘match’ ( Job Match!) are likely to face headwinds in the coming years.
As per the data released by the economic think tank, Centre for Monitoring Indian Economy (CMIE), on January 3, the Unemployment rate in India hit a four-month high in December 2021.
The overall unemployment rate for December stood at 7.9 percent from 7.0 percent in November.
The urban unemployment rate increased to 9.3 percent in December from 8.2 percent in the preceding month, while the rural unemployment rate climbed to 7.3 percent from 6.4 percent in November, the data showed.
Haryana topped the unemployment rate chart for the month at 34.1%, followed by Rajasthan at 24.1%, Jharkhand at 17.3%, Bihar at 16%, Jammu and Kashmir at 15% and Tripura at 14.7%
Karnataka experienced the lowest unemployment rate at 1.4%, followed by Gujarat and Odisha at 1.6%, Chhattisgarh at 2.1% and Telangana at 2.2%.
During the quarter of April-June 2021, when India faced a massive surge in cases of covid-19 infection and deaths, the unemployment rate stood at 7.97%, 11.84% and 9.17% sequentially.
In May 2021, the period when Covid-19 cases reached their peak in the country, Urban unemployment recorded by the think tank stood at 14.72%, up 4.94% from the data recorded in April.
To the uninitiated, the unemployment rate in the country in April and May 2020 stood at 23.52% and 21.73% each. In late March, PM Modi had announced a nationwide lockdown for 21 days, which continued to be in effect for subsequent months.
With the increasing cases of Omicron variant and the positivity rate exceeding 1%, the country's economic activity and consumer morale have taken a knock, reported Reuters.
To not let the second episode of the Covid-19 virus repeat itself, many states have put reasonable restrictions in the form of night curfews, prohibiting gatherings, shutting down schools and colleges, halving the capacity of cinema halls and restaurants, amongst others.
Many economists believe that the Omicron variant could reverse the economic recovery seen in the previous quarter.
Economists and policymakers closely follow the data released by CMIE on unemployment as the government does not release monthly unemployment figures.