COVID-19 Continues To Influence Jobs In India, Unemployment Rate On Rise Again

The unemployment rate is on the rise in the country yet again. The unemployment rate has increased this week in cities, metros, as well as rural areas.

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India's unemployment rates have increased yet again. During the week ending 20th June, the unemployment rate in the country reached 9.35 percent.

Last week, it was at 8.7 percent. Compared to 13.62 percent in the first week of June, these numbers are quite low. The unemployment rate in the country, as of 23rd May, stood at 14.73 percent. It had reached the record level. 

According to data from the Center for Monitoring Indian Economy (CMIE), the unemployment rate in cities and metros is still higher than in rural areas.

During the week ending 20th June, The unemployment rate in cities and metros rose to 10.3 percent. Last week, it was at 9.7 percent. On the other hand, if we talk about rural areas, the unemployment rate has increased to 8.92 percent as compared to 8.23 percent last week. 

According to CMIE MD and CEO Mahesh Vyas, the increase in the unemployment rate shows that most people who lost their jobs in recent times due to the coronavirus pandemic are still looking for jobs.    

Shyam Sundar, professor at XLRI and a well-known labour economist, says "whether the unemployment rate will decrease or increase depends largely on the next two months. In this period, the unemployment rate can go either way.

Even if the coronavirus pandemic is controlled well during this period, it may take at least two quarters for the labour market to stabilise.