Even before the third covid wave, it has the potential to be dominated by the omicron virus variant, starting, the country’s unemployment rate is spiny, reflecting the economic inability to recover slowly to overcome the increase in job demand.
The Indian unemployment rate rose to a four-month high of 7.91% in December, according to the Indian economic monitoring center (CMIE). The third wave of pandemic can now worsen the situation. Hopefully, because there is no possible big locking this time – a rather high level of population vaccination is seen reducing the severity of the pandemic – the upcoming increase in unemployment can become less sharp.
In accordance with CMIE data, both urban and rural areas contribute to the surge in unemployment during December. The All-India unemployment rate was higher in August 8.32% but the unemployment rate in the next three months was lower – at 6.86% in September, 7.75% in October and 7% in November.
“The economy cannot produce adequate work for those who look for it. There is a healthy increase in the level of labor participation in December. The workforce increased by 8.5 million, but the employment was expanded to be 4 million. This caused the unemployment rate to rise,” Word MD & CEO MD & VYAS CMIE.
The total work has increased by 1.4 million in November to 402.1 million during October. In October, the overall work of the country declined 5.5 million to 400.8 million in the previous month.
In accordance with the latest monthly CMIE data, weakness in urban work still does not take place in December too. Unemployment in urban areas rose from December to four months by 9.3% compared to 8.62% in September, 7.38% in October and 8.21% in November.
However, the rural unemployment rate was at a two-month high in December of 7.28% compared to 6.44% in November. In August, the rural unemployment rate was 7.64%, down to 6.06% in September but rose again to 7.91% in October.