The unemployment rate surged in April to 7.6 per cent after seeing a dip in the previous month at 6.71 per cent.
In what may fuel further tensions for the Modi government in the ongoing election season, the unemployment rate surged in April to 7.6 per cent after seeing a dip in the previous month at 6.71 per cent, Centre for Monitoring Indian Economy (CMIE) data showed. The joblessness is now at its highest rate since October 2016, the data also revealed.
The lower unemployment rate reported in March was seen to bring in respite to the Narendra Modi-led NDA government, which is under attack for failing to create enough jobs. The lower unemployment rate in March was a blip and the latest numbers again joined the trend of previous months, Mahesh Vyas of CMIE told news agency Reuters. The unemployment numbers remained over 7 per cent in the three months preceding the month of March.
According to CMIE data, the joblessness rate surged to 7 per cent in December 2018 from 6.7 per cent in November 2018. Then, it surged to 7.2 per cent in February 2019 from 7.1 per cent in January 2019.
The unemployment situation was grim even before demonetisation at over 8 per cent, Mahesh Vyas told CNBC TV18. The rate of joblessness also fell to 2 per cent thereafter and now it stands at 7.6 per cent as people withdrew from jobs. The people are now not looking for jobs as they find no reason to hunt for them when they don’t exist, he added.
The labour participation dropped to 42 per cent from 44 per cent post demonetisation period, Mahesh Vyas added.
In December last year, the leaked unemployment data conducted between July 2017 to June 2018 showed the unemployment rate stood at 6.1 percent, the highest since 1972-73.