The coronavirus pandemic has also had a significant impact on the unemployment rate of the country. The lockdown implemented due to the epidemic took away employment to lakhs of people.
Meanwhile, data released by the Center for Monitoring Indian Economy (CMIE) shows that the country’s unemployment rate has increased in the week of July 25 in India. The unemployment rate in the country has risen to 7.14 per cent.
According to Hindustan Times, CMIE data states that the unemployment rate in India has increased by 1.16 per cent in a span of one week. According to the data, in the week ended July 18, the unemployment rate in the country was 5.98 per cent, which has now increased to 7.14 per cent. However, the unemployment rate has improved on a monthly basis, reaching close to 10 per cent in June. This is a bit of a relief.
According to CMIE data, the unemployment rate in rural areas of the country stood at 5.1 per cent for the week ended July 18, which has increased to 6.75 with an increase of 1.65 per cent on July 25. Similarly, the unemployment rate has increased even after the reopening of economic activities in urban areas. The urban unemployment rate was 7.94 per cent last week, which has increased to 8.01 per cent this week.
In July, the situation has improved as compared to the previous months. The unemployment rate in urban India has been below 9 per cent since the beginning of July, compared to less than 8 per cent nationally.
In contrast, the gross monthly unemployment rate in the country was 9.17 in June. During that time, the urban unemployment rate was 10.07 per cent, and the rural rate was 8.75 per cent. With the opening of economic activities in July, the unemployment rate has improved compared to the previous month.
In a recent article, CMIE MD and CEO Mahesh Vyas wrote, “The recovery in June notwithstanding, job losses compared to January 2021 were of the order of 17 million. Compared to 2019-20, the loss is a substantial 26 million. Covering such large gaps could take months if the June 2021 recovery is sustained.”
Similarly, according to another data released on Monday, the barometer of business expansion has also registered a decline in the week ended July 25 in the country. The Nomura India Business Resumption Index (NIBRI) for the week ended July 25 fell to 95.3 from 96.4 the previous week. The fall in the index reflects a decline in business activity. Nomura said the index fell 4.7 per cent from the first in the second wave.