The CMIE, however, termed as ‘debilitating’ the fall in labour participation rate that stood at 40.4% for the week ended July 12 from its recent peak of 42% in the week ended June 21.
India’s unemployment rate fell to 7.4% for the week ended July 12, from 8.9% in the previous week and a high of 23.5% in May, the Centre for Monitoring of Indian Economy (CMIE) said in its latest weekly report.
The CMIE, however, termed as ‘debilitating’ the fall in labour participation rate that stood at 40.4% for the week ended July 12 from its recent peak of 42% in the week ended June 21. In the whole of 2019-20, the average labour participation rate was 42.7%.
“The fall in the labour participation rate was compensated by a sharp fall in the unemployment rate in the week ended July 12, to 7.4%. This enabled a small recovery in the employment rate. It increased from 36.9% in the week ended July 5 to 37.4% in the week ended July 12,” CMIE said in its weekly report.
The 11% unemployment rate of June was still quite high compared to the less than 8% rate witnessed before the lockdown began. The unemployment rate had been rising steadily since 2017-18 when it averaged 4.6%. In 2018-19, it rose to 6.3% and further to 7.6% in 2019-20.
Source: Financial Express
