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Unemployment rate drops in India: Cmie

The unemployment rate in the country is falling as the economy slowly returns to normal, according to data from the Center for Indian Economic Monitoring (CMIE).

Monthly time series data from the Center for Monitoring Indian Economy revealed that the overall unemployment rate in India was 8.10% in February 2022, before dropping to 7.6% in March.

On April 2, the ratio fell further to 7.5%, with the urban unemployment rate at 8.5% and rural at 7.1%.

Abhirup Sarkar, a retired economics professor at the Indian Institute of Statistics, said that although the overall unemployment rate is falling, it remains high for a “poor” country like India.

The drop in the ratio shows the economy is getting back on track after being battered by COVID-19 for two years, he said.

“But still, this unemployment rate is high for India, a poor country. The poor, especially in rural areas, cannot afford to remain unemployed, which is why they accept any job that comes their way,” Sarkar said.

According to the data, Haryana recorded the highest unemployment rate in March at 26.7%, followed by Rajasthan and Jammu and Kashmir at 25% each, Bihar at 14.4%, Tripura at 14.1% and West Bengal at 5.6%.

In April 2021, the overall unemployment rate was 7.97% and climbed to 11.84% in May last year.

Karnataka and Gujarat recorded the lowest unemployment rate at 1.8% each in March 2022.

On Sunday, NITI Aayog Vice Chairman Rajiv Kumar said India was on the verge of a major economic recovery. He said talk of possible stagflation is “overhyped” as a solid economic foundation is being laid with the government’s reforms over the past seven years.

“India will remain the fastest growing economy and all other economic metrics are actually quite within range,” Kumar said. “Given all the reforms we have carried out over the past seven years, and given that we are seeing hopefully the end of the COVID-19 pandemic, and the growth rate of 7.8% we will achieve this year (2022-23), a very solid foundation is now laid for a further rapid increase in economic growth in the years to come.”

The latest FICCI economic outlook survey on Sunday released a median annual GDP growth forecast for 2022-2023 at 7.4%, with a minimum and maximum growth estimate of 6.0% and 7.8%, respectively.

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