Is India ready to witness another year of jobless growth?

Data released by CMIE shows that unemployment in India rose to 7.80% in March 2023. For FY 2022-23 average unemployment rate was 7.58%

Is India ready to witness another year of jobless growth?

Photo by Sujeeth Potla on Unsplash

According to data from the Centre for Monitoring Indian Economy (CMIE), India’s unemployment rate rose to 7.8% in March 2023, a three-month peak and a sign that the labour market is becoming less favourable.

The nation’s unemployment percentage increased in December 2022 to 8.30% before falling to 7.14% in January 2023. The CMIE statistics revealed on Saturday, April 1st 2022, indicated that it increased marginally once more in February to 7.45%.

According to the statistics provided by the CMIE, the unemployment rate in India’s urban regions in March was 8.4%, while it was 7.5% in rural areas. This means more urban job seekers cannot find employment that suits their requirements. The average unemployment rate was 7.7% on April 1st 2023.

In the financial year (FY) 2022-23, the average national unemployment rate was 7.58%. Although there were no more Covid-19-related restrictions in FY 2022-23, unlike its preceding two FYs, urban unemployment was higher than rural unemployment. The CMIE data showed that the average urban unemployment in FY 2022-23 was 8.47% vis-à-vis 7.17% rural unemployment.

CMIE’s managing director Mahesh Vyas was quoted by news agency PTI saying that the Indian labour market worsened in March 2023 as it rose by 3 percentage points from 7.5% in February to 7.8%, while, simultaneously, the workforce participation rate fell slightly by 0.1 percentage point from 39.9% in February 2023 to 39.8% in March, which has impacted the overall unemployment scenario.

According to the CMIE managing director, the employment rate in India fell from 36.9% in February 2023 to 36.7% in March because of deteriorating labour market circumstances. Additionally, during this period, there was a drop in the number of working individuals, from 409.9m to 407.6m.

Haryana had the highest jobless rate at 26.8% in March. Following closely behind were Rajasthan (26.4%), Jammu and Kashmir (23.1%), Sikkim (20.7%), Bihar (17.6%), and Jharkhand (17.5%).

Although the CMIE publishes private statistics on unemployment regularly, the Government of India doesn’t recognise this firm’s data.

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