November’s unemployment rate declines as the agricultural sector creates more jobs in rural areas.

Based on a drop in unemployment in rural areas during the rabi-sowing season, India’s total jobless rate in November dropped to 9.16% from a 29-month high of 10.05% in October, according to data from the Centre for Monitoring Indian Economy (CMIE).

While the urban jobless rate increased to 9.39% from 8.44% in November, the rural jobless rate decreased to 9.05% from 10.82% in the previous month. November is typically when the rabi crop is sown and the kharif paddy crop is harvested.

The unemployment rate usually decreases from October to November. According to CMIE data, the nation’s overall unemployment rate has decreased yearly in November since 2019, with the exception of 2022. This is in line with the decline in the rural unemployment rate. November 2022 saw a decline in the rural unemployment rate as well.

In contrast, the urban unemployment rate increased to 9.39% in November, a three-month high. This has been linked by experts to the widespread layoffs occurring in the formal sector.

Additionally, according to CMIE data, the labour participation rate (LPR) fell from 41.65% in October to 41.11% in November. The LPR dipped to 42.27% in rural India from 42.83% in October and to 38.85% in urban India from 39.36% in October.

According to data released last week, India’s overall urban unemployment rate (per the Periodic Labour Force Survey, or PLFS) stayed constant at 6.6% for the July–September quarter over the April–June period. The urban unemployment rate was 7.2% from July to September of 2022.

6.6% was the lowest unemployment rate in April and June since the PLFS-Urban series began in FY18. According to the PLFS, the pre-pandemic urban unemployment rate varied from 7.8 to 9.7%.

Leave a Reply

Your email address will not be published. Required fields are marked *