Fri. Mar 29th, 2024
picture credits- the indian express

In a blow to the Indian economy, as per CMIE’s latest data, it has been reported that urban unemployment in India was recorded at 7.21% on April 4 which jumped to 9.81% for the week that ended on April 11 and further to 10.72% for the week that ended April 18.

Thus, it can be rightfully stated that the unemployment rate in urban India has been on the upswing since the beginning of the current month.

Coupled with grim report by CRISIL, which points towards low economic activity due to partial lockdown in place across the country, the report by CMIE spells doom for the Indian economy.

India's unemployment rate rises to 7.7% in December: CMIE
picture credits- business today

It is to be noted that this reflects a shift in the burden of job losses to urban India, reversing the trend of high unemployment rate in the rural India largely bearing the brunt of Covid-induced strain on employment.

As per reports, the overall rural unemployment rate was marginally down to 8.4% for the week ended April 18 compared with 8.58% a week ago. Though, as it can be deciphered, the rural unemployment rate has comparatively plummeted the fall isn’t significant but rather marginal. In the month of march, the rural unemployment rate, had been on the upswing. To talk about numbers, from 5.86% on March 7, it rose to 6.17% on March 14, 6.41% on March 21 and to 8.58% on April 4 — fell to 8% on April 11 and further to 7.31% on April 18.

MD & CEO of CMIE, Mahesh Vyas, recently told FE that six million out of the 10 million salaried jobs have already been lost due to the pandemic. He additionally stated that, the rural sector workers have been hit because MSMEs and other industrial units have been in trouble.

In the absence of opportunities in the urban areas, companies and small establishments, there has been a significant shift of the labor force to the agriculture space, creating a fair bit of disguised unemployment. It is to be noted that India, last year, had witnessed a huge labor migration from urban area to rural, during the lockdown, which had led to a robust agriculture growth at the time, which had solely driven the Indian economy.

Unemployment rate had reached its peak for the week that had ended May 3, 2020 at 27.11%.

Vyas has additionally stated that the strain on urban India is now intensifying. He added that “we could see more livelihoods lost as states enforce more restrictions.” Half the factories in Maharashtra are either shut or on the verge of shutting down. Delhi on Monday decided to impose a week-long lockdown with effect from April 19 evening. And there are high chances that other urban centers may soon follow suit.

CMIE’s 30-day moving average unemployment measure, which is drawn from a fairly large sample, indicates joblessness which was 7% on April 11, has gone up to 7.4%, a fairly swift uptick in a short time.

By Shivani Khanna

A woman who believes in equal rights and aspires to inspire people through her writings. I aspire to contribute to the economic world and society with diligence and thus being an economic advisor tops my career ambitions . I currently am pursuing Economic honours ( at undergrad level) from delhi university.