July job loss rate at pre-Covid lev­els

Hindustan Times (Gurugram) - - Htbusiness - Prashant K Nanda prashant.n@livemint.com

NEW DELHI: Job­less­ness in July cooled to pre-Covid-19 lev­els as crop plant­ing gath­ered pace fol­low­ing boun­ti­ful rains and more eco­nomic ac­tiv­i­ties re­sumed, mark­ing the end of the un­em­ploy­ment cri­sis trig­gered by the coro­n­avirus curbs.

In­dia’s over­all un­em­ploy­ment rate fell to 7.43% in July from 10.99% in June, and even lower than the March fig­ure of 8.75%, ac­cord­ing to a sur­vey by the Cen­tre for Mon­i­tor­ing In­dian Econ­omy (CMIE).

With coro­n­avirus cases soar­ing in March, In­dia went into a strin­gent lock­down be­gin­ning March 25 to curb in­fec­tions, trig­ger­ing mis­ery and mass un­em­ploy­ment.

Among states, Odisha and Gu­jarat had the low­est un­em­ploy­ment rate of 1.9% each in July, fol­lowed by Megha­laya (2.1%). Haryana had the high­est un­em­ploy­ment rate of 24.5%, fol­lowed by Delhi 20.3% and Hi­machal Pradesh 18.6%, the CMIE data re­leased on Tues­day showed. Ru­ral un­em­ploy­ment fell to 6.6% in July from 10.52% in June; how­ever, ur­ban un­em­ploy­ment rate at 9.15% in July against 12.02% in June re­mained stub­bornly above both na­tional and ru­ral fig­ures. Ac­cord­ing to CMIE, ur­ban job­less­ness was 25.79% in May and 24.95% in April. In con­trast, na­tion­wide job­less­ness was 7.16-8.19% be­tween Au­gust 2019 and Fe­bru­ary 2020.

The fall in the un­em­ploy­ment rate is largely at­trib­uted to a good mon­soon and bet­ter sow­ing sea­son in ru­ral In­dia as well as the grad­ual open­ing of most ac­tiv­i­ties, in­clud­ing self-em­ploy­ment, in both ru­ral and ur­ban cen­tres.

“De­cent jobs and for­mal sec­tor job creation are very slow as the pan­demic has hit busi­nesses and re­cov­ery will take time,” said Arup Mi­tra, a pro­fes­sor of eco­nomics at the In­sti­tute of Eco­nomic Growth in New Delhi.

PTI

In­dia’s over­all un­em­ploy­ment rate was 7.43% in July, lower than 8.75% in March.

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