Unemployment Peaks in Some Indian States, According to CMIE Data

According to the Centre for Monitoring Indian Economy, India's unemployment rate rose to 7.8% in March, marking a three-month high and indicating a decline in the country's labor market conditions.

Unemployment Peaks in Some Indian States, According to CMIE Data

WA National: The Centre for Monitoring Indian Economy (CMIE) recently released data showing that India's unemployment rate rose to 7.8% in March, marking a three-month high and indicating a decline in the country's labor market conditions. The rate had gone up to 8.3% in December 2022 but had decreased to 7.14% in January before rising again to 7.45% in February.

The available data shows that the unemployment rate in urban areas was 8.4% in March, while in rural areas, it was 7.5%. This is significant because the majority of India's population lives in rural areas, and their livelihoods depend on agriculture and related activities.

The managing director of CMIE, Mahesh Vyas, said that the labor market conditions had worsened in March, leading to a drop in the employment rate and the number of employed people. The employment rate dropped from 36.9% in February to 36.7% in March, and the number of employed people decreased from 409.9 million to 407.6 million during this period.

Haryana had the highest unemployment rate at 26.8%, followed closely by Rajasthan, Jammu and Kashmir, Sikkim, Bihar, and Jharkhand. The high unemployment rates in these states indicate that they are facing significant economic challenges, which could have long-term consequences for their residents.

Overall, the data suggests that India's labor market is struggling, which could hamper the country's economic recovery from the COVID-19 pandemic. It remains to be seen what steps the government will take to address this issue and support job creation in the country.