Unemployment rate has fallen to pre-lockdown levels in India, said CMIE
The ongoing events due to Covid-19 are apprising some major consequences in India. Lately, the CMIE (Centre for Monitoring Indian Economy) managing director and CEO Mahesh Vyas said, “In the first three weeks of June the unemployment rate dropped dramatically to first, 17.5 then 11.6 per cent and now 8.5 per cent.” Apparently, the rate of unemployment in India fell to its pre-lockdown levels of 8.5% in the week ended June and it stood at 8.75% in March.
However, with the drastic fall in the dynamics of rural unemployment, Urban unemployment continues to be higher in pre-Covid level. The urban joblessness is expected to come down gradually as the new business plans open up. The rate of urban unemployment stands less than that of national (17.51%) and rural unemployment (17.1%) economically today.
Vyas also said, there has been a higher increase in rural employment as the MGNREGA scheme by the government has proved to be highly beneficial for the workers of rural India and helped in bringing the unemployment rate down.
“Aggressive use of the MGNREGA scheme by the government, timely rains and enhanced sowing activities seem to have helped engage rural India and bring the unemployment rate down,” Vyas said.
“The unemployment rate dropped to 7.26 per cent in rural India in the week ended June 21. This is lower than it was in the pre-lockdown week ended March 22 when the rate was 8.3 per cent. It is lower than the average unemployment rate in February and March 2020 which was 7.34 per cent and 8.4 per cent, respectively,” CMIE’s Vyas said.
“It is much lower than the average 13-week lockdown period average of 20.3 per cent and, it is still a little higher than the 13-week average pre-lockdown rate of 6.8 per cent,” he added.
Recently the measures taken by the government under Garib Kalyan Rojgar Yojana was considered as explicit by Vyas to which he said, “Nevertheless, rural unemployment can be expected to remain low till October at least. These efforts can also be expected to raise consumption demand from rural India.”
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