Unemployment rate in cities is once again on the rise. I feel I don’t need to explain why. Some people, on the other hand, maybe curious about the explanation. Covid-19 is the reason. Of course, urban unemployment is increasing as a result of Covid-19. Furthermore, if you look at the numbers, not only urban but also rural unemployment is on the rise.
According to reports, the unemployment rate in urban areas is 10.5 percent, while it is 7.9 percent in rural areas. The reason for this is because covid-19 has imposed limits and lockdowns. It boosted the rate higher than it had ever been before covid-19.
Unemployment rate according to CMIE
In April, India’s jobless rate reached a four-month high of 7.97 percent. In addition, it was 6.5 percent in March, 6.89 percent in February, and 6.52 percent in January this year. Both urban and rural areas have seen a dramatic increase in unemployment situations.
The lack of job growth, according to CMIE’s MD, is the cause behind this. Furthermore, CEO Mahesh Vyas noted that the LPR (Labour Participation Rate) has decreased due to a lack of jobs. LPR was 40.2 percent lower in March than it was in December when it was 40.5-40.6 percent.
Rates on a monthly basis
Vyas went on to say that as of March 2021, 43.8 million individuals in India had either lost their jobs or were unemployed.
As we all know, last year, the government enforced a statewide lockdown in response to the rising number of instances of covid-19, resulting in an increase in the unemployment rate. Furthermore, XLRI professor KR Shyam noted, “A big cause to be concerned is the rise in unemployment cases.” Given the current condition of Covid in India, this number could climb significantly as several states continue to impose lockdowns.
Hope everything comes back to normal soon!
Author: Pranshu Agarwal
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