India's Unemployment Hits 8-Month High At 9.2% In June: CMIE Report

Despite an increase in the LPR, which measures the proportion of the working-age population (15 years and above) either employed or actively seeking employment, unemployment rates have also risen

In June 2024, the female unemployment rate exceeded the national average (Image Source: Pexels)

In June 2024, the unemployment rate climbed to its highest level in eight months at 9.2 per cent, compared to 7 per cent the previous month. This marked an increase from 8.5 per cent recorded in June 2023, as per data from the Centre for Monitoring Indian Economy (CMIE), which conducts periodic surveys under the Consumer Pyramids Household Survey, reported Business Standard.

The unemployment rate is a metric that quantifies the proportion of individuals actively seeking employment within the labour force.

In June 2024, the female unemployment rate exceeded the national average, reaching 18.5 per cent, up from 15.1 per cent in the corresponding month of the previous year. Meanwhile, the male unemployment rate was slightly higher at 7.8 per cent compared to 7.7 per cent in the same period last year.

Despite an increase in the Labour Participation Rate (LPR), which measures the proportion of the working-age population (15 years and above) either employed or actively seeking employment, unemployment rates have also risen.

The LPR saw a slight improvement, climbing to 41.4 per cent in June 2024 from 40.8 per cent in May and up from 39.9 per cent in June 2023. In June, the male and female labour participation rates stood at 68.1 per cent and 11.3 per cent, respectively.

Meanwhile, the number of Americans filing for unemployment benefits last week saw a slight increase, remaining close to a one-year peak, primarily driven by significant rises in states like New York, New Jersey, and California. Since the end of the school year, new jobless claims have surged, prompting questions about whether this spike is temporary or indicative of growing layoffs.

According to government data released Wednesday, new claims rose by 4,000 to 234,000 from the previous week's figure. Economists surveyed by the Wall Street Journal had expected new claims to total 233,000 for the week ending June 29, based on seasonally adjusted numbers.