Unemployment Rate In India Rises To 7.83 Per Cent In April, Says Report

The highest rate of unemployment, which is 34.5 per cent, was recorded in Haryana, followed by followed by 28.8 per cent in Rajasthan

New Delhi: The unemployment rate in the country rose to 7.83 per cent in April from 7.60 per cent in March, according to the data from the Centre for Monitoring Indian Economy (CMIE).

The report said unemployment in urban areas rose to 9.22 per cent in April from 8.28 per cent the previous month, while the rural unemployment rate slipped to 7.18 per cent from 7.29 per cent, the data revealed.

The highest rate of unemployment, which is 34.5 per cent, was recorded in Haryana, followed by followed by 28.8 per cent in Rajasthan.

Quoting economists, Reuters mentioned that employment opportunities have been hit hard by sluggish domestic demand and slow pace of economic recovery amid rising prices.

In March, retail inflation spiked to a 17-month high of 6.95 per cent, and is likely to go further to 7.5 per cent later this year, said Shilan Shah, economist at Capital Economics, Singapore, in a note on Saturday.

According to Shah, the Reserve Bank of India (RBI) will likely increase the repo rate in June.

As the government does not release its own monthly figures, the data from the Mumbai-based CMIE is closely watched by economists and policymakers.

The analysts have also been watching the depleting labour participation rate, the proportion of people in employment or seeking job among the working population.

According to CMIE’s earlier data, the oversaid number also skidded to 39.5 per cent in March 2022 from 43.7 per cent in March 2019, as lakhs of people lost jobs during the pandemic.