Jobless rate touches ‘4-mth high’: How Omicron fears may hit numbers further

The unemployment rate rose to 7.9 per cent in December 2021, up from 7.0 per cent in November. The previous highest unemployment rate was 8.3 per cent in August. It stood at 9.1 per cent in December 2020.

Urban unemployment rate rose to 9.3 per cent in December 2021 from 8.2 per cent in the previous month, while the rural unemployment rate increased to 7.3 per cent from 6.4 per cent, the data showed.

What are the risks to employment?

Urban unemployment rate on a weekly level had spiked to a double-digit rate to around 10.09 per cent in mid-December. Urban employment is a proxy for better paying jobs and a decline in its numbers reflects the impact on better-paying organised sector jobs. Economic activity and consumption levels have been affected with rising cases of Omicron coronavirus variant and restrictions imposed by many states, which could adversely affect economic recovery further going ahead.

On Monday, the country reported 33,750 fresh Covid-19 cases and 123 deaths. With 10,846 recoveries, the active caseload stood at 1,45,582.

The December employment numbers are also significant as they show a declining trend even before the new Covid-19 wave has forced fresh restrictions on business.