Unemployment rate in June touches 7.8%: CMIE

6 Jul 2022 , 10:02 AM

According to figures issued by the economic think tank Centre for Monitoring Indian Economy (CMIE), the nation’s unemployment rate went up to 7.80% in June due to the loss of 13 million jobs, mostly in the agriculture sector. 

The sharp increase in the unemployment rate in rural regions, which rose to 8.03% in June from 6.62 percent in May, was what caused the sharp decline in employment last month. According to the CMIE statistics, it was somewhat better in urban areas, at 7.30% compared to the 7.12% recorded in May.

“This is the largest employment decline in a month without a lockdown. Essentially, this is a seasonal rural phenomenon. However, this is a seasonal phase, and when the sowing season starts in July, it is most probable that the agricultural activity in rural regions would pick up again “Mahesh Vyas, the managing director of CMIE, disclosed this information to PTI over the phone.

While 13 million jobs were lost during the reporting month, just 3 million more people were jobless, he claimed.

The remaining individuals left the labor force as it decreased by 10 million, he noted. Vyas said that the decline was only seen in the black markets and that it’s conceivable that this is primarily a problem with labor migration rather than a general economic slump.

He said, “It is concerning that such vast expanses of labor are so susceptible to the whims of the monsoon.” The second alarming statistic, according to him, is that there were 2.5 million fewer paid employment in June 2022.

“The increasing risk of paid positions was also made clear in June. The government reduced the need for armed people, and prospects in new-world employment financed by private equity also began to decline. These jobs cannot be saved by the rain god. For the economy to save and create these jobs, it must expand faster than it likely will in the near future “Added he.

According to the report, Haryana had the highest unemployment rate (30.6%), followed by Rajasthan (29.8%), Assam (17.2%), and Bihar (14%) in that order.