NEW DELHI: India has been running out of jobs. But the news today is, how low can we go?
The urban unemployment rate stood at a nine-week high of 8.53 per cent on Monday, December 13, stated the Centre for Monitoring Indian Economy (CMIE). Last week, the rural jobless rate was also at a nine-week high of 7.42 per cent.
The high unemployment rate in India highlights the economy’s ability to provide jobs in an adequate amount, stated Mahesh Vyas, CEO, CMIE. November saw a fall in employment opportunities in cities by 0.9 million even though it increased in rural areas by 2.3 million in October.
Vyas recently stated that the urban jobs are directly related to the organised sector and its decline means an overall decline in the quality of jobs provided in India. Official data from last week suggested that industrial production had stagnated in October. The Ministry of Finance, Government of India, assured that the gross domestic product would gain traction in the remaining quarters of the fiscal year.
According to the Department of Economic Affairs’ November report, 19 of 22 high-frequency indicators in September, October and November crossed pre-COVID (the corresponding months of FY20) levels, indicating a significant recovery. The CMIE figure, which the ministry has disputed, does not exactly match the government’s optimistic portrayal of the economy.
Job losses in the travel and hospitality sectors appear to be behind the recent surge in urban unemployment rates, according to Rachit Mathur, Founder and CEO, Avenue Growth, an on-demand labor platform. The information technology sector, on the other hand, has been booming.