Explained: India’s falling jobless rate and risks to employment

CMIE data shows that India's unemployment rate touched a four-month high of 7.9 per cent in December.

The unemployment rate rose to 7.9 per cent in December. It stood at 7 per cent in November last year and 9.1 per cent in December 2020.(File)

India’s unemployment rate touched a four-month high of 7.9 per cent in December, data from the Centre for Monitoring Indian Economy (CMIE) showed on Monday. The numbers show a significant declining trend even before economic activity was affected due to the fresh Covid-19 restrictions imposed in many states.

What is the latest unemployment rate?

The unemployment rate rose to 7.9 per cent in December. It stood at 7 per cent in November last year and 9.1 per cent in December 2020.

Urban unemployment rate rose to 9.3 per cent in December 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 these numbers reflects impact on better-paying organised sector’s jobs.

With Covid-19 cases on the rise amid the threat posed by the Omicron variant and many states imposing fresh curbs, economic activity and consumption levels have been affected. This could adversely affect economic recovery further going ahead.

Also Read | How policymakers in UP, rest of India are underestimating the unemployment crisis

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

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

Aanchal Magazine

Aanchal Magazine is a Senior Assistant Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With over 13 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience. Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions. Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy. Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it. Find all stories by Aanchal Magazine here ... Read More