India's Unemployment Rate Rises To Three-Month High At 8% In Nov: CMIE

While the economy gradually recovers from COVID-19 and the workforce is reinvigorated, unemployment, particularly in urban India will surely be a something to look at.

India's Unemployment Rate Rises To Three-Month High At 8% In Nov: CMIE
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INDIA'S unemployment rate rose to 8 per cent in November, the highest in three months, up from 7.77 per cent in the previous month, data from the Centre for Monitoring Indian Economy (CMIE) showed on Thursday.

The urban unemployment rate rose to 8.96 per cent in November from 7.21 per cent in the previous month, while the rural unemployment rate slipped to 7.55 per cent from 8.04 per cent, the data showed.

Data from the Mumbai-based think tank CMIE is scrutinised by economists and policymakers alike as the government does not release its own monthly figures.

Meanwhile, data that was released by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) in August showed that the unemployment rate for April-June 2022 was 7.6 per cent overall out of the total Labour Force Participation Rate (LFPR) of 47.5 per cent.

For July-September, LFPR rose to 47.9 per cent while unemployment declined to 7.2 per cent.

Data from CMIE showed that listed companies “collectively clocked a record 9.3 per cent growth in employment over the previous year’s employment of 9.3 million.” Wages paid to labour by the 3,315 companies that provided data on employment increased by 13.6 per cent in nominal terms in 2021-22. But, growth in annual wage rate was “sluggish” at a mere four per cent.

According to a piece by Mahesh Vyas, Managing Director and CEO of CMIE, “It is quite likely that the large increase in new employment witnessed in 2021-22 came in at lower-than-average wages of the older employees. It is quite likely that it was this newer cohort that pulled down the overall growth in wages, which in turn depressed the overall average wage rate below the inflation rate.”

The Union Budget for 2022-23 estimated the strength of central government employees at 34.65 lakh as on March 1, 2022. Apart from this, Prime Minister Narendra Modi had launched a drive to recruit ten lakh personnel by filling up existing vacancies against sanctioned posts “in a mission mode.”

The data by CMIE revealed that unemployment was highest in Haryana – 30.6 per cent on a 30-day moving average.

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