Unemployment Rate Jumps To 8.30% In December 2022, Highest In 16 Months: CMIE

CMIE data showed that the urban unemployment rate increased to 10.09 per cent while the rural unemployment rate declined to 7.44 per cent in December

The unemployment rate in the country rose by 8.30 per cent in December, the highest in the last 16 months, according to the data from the Centre for Monitoring Indian Economy (CMIE), reported Reuters. It added that in November unemployment rate was at 8 per cent.

CMIE data showed that the urban unemployment rate increased to 10.09 per cent while the rural unemployment rate declined to 7.44 per cent in December. The urban and rural unemployment rate for November was 8.96 per cent and 7.55 per cent respectively.

Unemployment and inflation have been key concerns for the central government. India’s urban unemployment rate dropped for the fifth consecutive quarter in the July-September period of 2022-23 to 7.2 per cent, according to the latest Periodic Labour Force Survey (PLFS) released by the National Statistical Office (NSO) in November.

The labour market conditions improved across rural and urban regions. It was primarily rural India that made the bigger contribution to the turnaround in labour conditions. The labour participation rate jumped to 40.48 per cent in December, the highest in 12 months, the report said.

Mahesh Vyas, managing director of the CMIE, told Reuters that the rise in the unemployment rate is “not as bad as it may seem,” as it came on top of a healthy increase in the labour participation rate. 

"Most importantly, the employment rate has increased in December to 37.1 per cent, which again is the highest since January 2022," Vyas told Reuters.

CMIE data showed that the unemployment rate rose to 37.4 per cent in Haryana, 28.5 per cent in Rajasthan and 20.8 per cent in Delhi.