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India’s unemployment rate falls to 11-month low in January

Job seekers attend a job fair organised by the employment department of the Delhi state government in New Delhi, India, January 21, 2019. REUTERS/Anushree Fadnavis

Following a considerable drop in rural unemployment, India’s unemployment rate fell sharply in January to 6.57 per cent, which was the lowest since March 2021. In December, the jobless rate jumped to 7.91 per cent, up from 6.97 per cent in November

The news: It is believed that this could be owing to the relaxation of Covid restrictions that began in the month of January, as the number of cases in large states began to fall.

  • Rural unemployment in January fell to 5.84 per cent, off from 7.28 per cent in December 2021.

What’s going on: According to the data from the Center for Monitoring Indian Economy (CMIE), urban unemployment was at 8.16 per cent. This is down from 9.30 per cent than what it was in December.

  • In January, Telangana had the lowest unemployment rate (0.7 per cent), which was followed by Gujarat (1.2 per cent), Meghalaya (1.5 per cent), Odisha (1.8 per cent), and Karnataka (2.9 per cent).

What they are saying: According to the CMIE, there were 53 million unemployed people in India in December 2021, with a large proportion of them being women.

  • As per the reports by CMIE, 35 million were unemployed and actively looking for work. Meanwhile, 17 million were eager to work but not actively looking for it.
  • According to CMIE, women made up 23 per cent, 8 million of the 35 million unemployed who were actively looking for work in December 2021.
  • At the same time, although not actively looking for work, 53 per cent of the 17 million women were passively unemployed, and 9 million women were willing to work.
  • Haryana remained the state with the highest unemployment rate of 23.4 per cent, followed by Rajasthan (18.9 per cent), Tripura (17.1 per cent), Jammu and Kashmir (15 per cent) and Delhi (14.1 per cent).
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