Incidentally, demand for jobs under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), as recently reported by FE, was 17-month low in September.
Led by a sharp 249 percentage point rise in rural joblessness rate, India’s unemployment rate shot up to 8.86% for the week ended October 10 compared with 7.56% a week earlier, data complied by the Centre for Monitoring Indian Economy (CMIE) showed.
“The increase in unemployment was in rural India last week. But, this is not a matter of much concern because the labour participation and the employment rate increased in rural India. The employment rate increased from 37% in the previous week to 38%. In urban India while the unemployment rate has dropped a bit, the employment rate has also dropped a bit. This is slightly worrisome. But, rural India provides comfort,” said CMIE’s MD and CEO Mahesh Vyas.
Rural unemployment rate rose to 9.48% for the week ended October 10 from 6.99% a week ago. Incidentally, demand for jobs under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), as recently reported by FE, was 17-month low in September.
On the other hand, the urban unemployment rate fell during the week to 7.5% from 8.73% a week ago.
XLRI professor and labour economist KR Shyam Sundar said more than the formal sector, informal sector has been driving employment in urban areas in recent times led by retail sector and hopefully, the trend will continue till the year-end.
Overall, unemployment rate reached its recent peak of 14.73% for the week ended on May 23. As the impact of the virus ebbed and restrictions on mobility eased, overall unemployment rate started declining.