Parul
India’s unemployment rate hit a four-month high in December, data from the Centre for Monitoring Indian Economy (CMIE) revealed.
The unemployment rate rose to 7.9 per cent in December from 7 per cent in November, its highest since 8.3 per cent in August 2021.
The urban unemployment rate was at 9.30 per cent in December from 8.21 per cent in November 2021, while the unemployment rate in rural areas stood at 7.28 per cent from 6.44 per cent in the previous month, according to the data.
Economic activity and consumer sentiment have been hit in the South Asian nation after a rise in cases of the Omicron coronavirus variant and social distancing restrictions in many states.
Many economists worry that the Omicron variant could reverse the economic recovery seen in the previous quarter.
Whereas, CMIE Managing Director and CEO Mahesh Vyas told PTI that in December 2021, the number of jobs increased but the number of jobseekers was even higher.
“This is a good sign as the influx into the labour market was high. Around 8.3 million additional people were looking for jobs. However, four million jobseekers got employment,” he stated.
Mumbai-based CMIE data on unemployment is closely watched by economists and policymakers as the government doesn’t release monthly figures.
