Categories: Economy

India’s Unemployment Rate Rises to 8.30% in Dec 2022

Unemployment rate in India rose to 8.30 per cent in December 2022, the highest in 16 months, according to data from Centre for Monitoring Indian Economy (CMIE). It was 8 per cent in the month of November. While urban unemployment rose to 10.09 per cent in December, from 8.96 per cent in November, rural unemployment moved to 7.44% from 7.55%, the data revealed.

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The Urban-Rural Gap:

The urban unemployment rate rose to 10.09% in December from 8.96% in the previous month, while the rural unemployment rate slipped to 7.44% from 7.55%.

Is The Unemployment Data a Worrisome Case:

  • The rise was “not as bad as it may seem,” as there was a simultaneous increase in the labour participation rate, which rose to 40.48 per cent in December, the highest in 12 months.
  • Most importantly, the employment rate has increased in December to 37.1%, which again is the highest since January 2022.
  • The unemployment rate had declined to 7.2% in the July-September quarter compared to 7.6% in the previous quarter, according to separate quarterly data compiled by state run National Statistical Office (NSO) and released in November.

State-wise Unemployment Rate:

In December, the unemployment rate rose to 37.4% in the northern state of Haryana, followed by 28.5% in Rajasthan and 20.8% in Delhi.

What is Labor Force Participation Rate:

Labor Force Participation Rate (LFPR) is known as the section of the working population in the age group of 16-64 in the economy currently employed or either seeking employment.

 

Piyush Shukla

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