Unemployment rate at 15-week high of 8.58%

By: |
April 13, 2021 2:15 AM

India’s unemployment rate galloped to a 15-week high of 8.58% for the week ended April 11, largely due to a sudden 260 basis points rise in the urban unemployment rate to 9.81% over the week.

Urban unemployment rate had fallen to 7.21% for the week ended April 4 from 8.84% for the week ended January 31.

India’s unemployment rate galloped to a 15-week high of 8.58% for the week ended April 11, largely due to a sudden 260 basis points rise in the urban unemployment rate to 9.81% over the week.

Rural unemployment, however, eased to 8% for the week ended April 11 from 8.58% in the previous week, data put out by Centre for Monitoring Indian Economy (CMIE) showed.

Urban unemployment rate had fallen to 7.21% for the week ended April 4 from 8.84% for the week ended January 31.

CMIE managing director and CEO Mahesh Vyas would not hazard a guess as to what led to the sudden spike in the urban unemployment rate in just a week’s time. However, he said, “We should worry about the future.”

After the government imposed a lockdown towards the end of March last year as the pandemic hit, the country’s unemployment rate started picking up and rose to its peak of 27.11% for the week ended May 3 last year.

It then fell to 4.66% on January 17 this year, but again went up to 8.16% for the week ended April 4, coinciding with the rapid spike in the fresh Covid-19 cases. In recent weeks, the peak was on December 27 at 9.5%.

In a fast-spreading second wave, the country has recorded more than 9.37 lakh cases for the week ended April 11 — the highest weekly tally since the beginning of the pandemic last year. It is widely expected that the second wave will have a far more damaging impact on the job market and thus, unemployment rate will again go up in the coming weeks.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India, EU to announce resumption of FTA talks at virtual summit on Saturday: EU sources
2FinMin releases Rs 9,871 cr as revenue deficit grant to 17 states
3WTO countries should immediately finalise text on patent waiver for COVID-19 treatment: Experts