Unemployment Rate in India Reached a 16-month High of 8.3%: Is Inflation the Cause?

The Centre for Monitoring Indian Economy (CMIE) said on Sunday that unemployment rate in India rose to 8.30% in December, the highest level in 16 months, from 8.00% in November. According to the study, the urban unemployment rate rose to 10.09% in December from 8.96% at the beginning of the month, while the rural rate fell to 7.44% from 7.55%. Unemployment numbers have fluctuated throughout states, with Haryana displaying the highest rate of 37.4%. At the same time, Odisha counted as the lowest unemployment rate in the country, with a mere 0.9%.

Has the unemployment rate in India increased in the last month itself?

Every month, CMIE publishes statistics to calculate the national unemployment rate. Unemployment in the country peaked during the Covid-19 epidemic and has subsequently been declining till December 2022. The unemployment rate in India increased to a 16-month high of 8.30% in the last month of 2022.

According to independent quarterly figures prepared by the state-run National Statistical Office (NSO) and released in November, the unemployment rate fell to 7.2% in the July-September quarter from 7.6% the previous quarter.

Is inflation or corruption the cause of the rising unemployment rate in India?

The biggest issue for Prime Minister Narendra Modi's administration ahead of the Lok Sabha elections in 2024 is containing rising inflation and employing millions of young people to join the labour market.

In September, the main opposition Congress party began a five-month cross-country march from Kanyakumari in the south to Srinagar in the Jammu and Kashmir area. To mobilise public opinion on problems such as high prices, unemployment and what it calls the Bharatiya Janata party's divisive ideology.

Cities with the highest unemployment rate in India as per statistics

According to independent quarterly figures prepared by the state-run National Statistical Office (NSO) and released in November, the unemployment rate fell to 7.2% in the July-September quarter from 7.6% the previous quarter.

According to CMIE statistics, the jobless rate in Haryana jumped to 37.4% in December, followed by 28.5% in Rajasthan and 20.8% in Delhi.

The article has been written by Preeti Anand