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As joblessness in rural areas increased, October saw India’s unemployment rate rise to its highest over the last two years, as per a private research firm.
According to data from the Centre for Monitoring Indian Economy Ltd., the overall rate increased to 10.05% last month from 7.09% in September, which was the highest since May 2021. While the urban rate of unemployment decreased marginally to 8.44%, the rural rate surged to 10.82% from 6.2%.
India being the second-largest producer of rice, wheat, and sugar in the world, farming productivity is being negatively impacted by the weakest monsoon rains in five years. However, economic activity has been comparatively robust in urban areas, where consumption and manufacturing have increased.
The government releases the unemployment rate for the entire nation once a year and the rate for metropolitan areas once a quarter. According to the most recent official report, which was made public in October, the nation’s unemployment rate for 2022–2023 is 3.2%.
Even though India’s economy is predicted to grow at one of the fastest rates in the world this year and next—more than 6%—it will still not be able to produce enough jobs to employ the millions of people who need them. About 10 million people entered the labour market in October with the intention of finding employment, according to CMIE data.
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