The unemployment rate in India continued to stay above 20 percent amid nationwide lockdown. According to data compiled by CMIE showed that the unemployment rate for the week ended 17 May was 24.01 percent when compared to 23.97 percent a week ago.
However, with industries opening up gradually, there is an increase in labour participation rate from 35.4 percent for week ended 26 April to 38.8 percent now, the Centre for Monitoring of Indian Economy said while acknowledging that uncertainty continues to prevail.
“Halfway into the month of May, it appears that the unemployment rate is around the same level as it was in April, mostly higher by a whisker,” it said adding that the small relaxations in the lockdown since 20 April has no made any positive effect.
“A persistently high unemployment rate indicates that a large proportion of labour that is willing to work is unable to find jobs,” it said.
Its data shows that urban India has a higher unemployment rate of 27 percent for the latest week ended 17 May compared to rural India’s 23 percent and a lower labour participation rate of 34 percent compared to 41 percent in rural India.
“Evidently, people are coming back to the labour markets as the lockdown eases. Consequently, the labour participation rate has bounced back from its lowest level of 35.4% in the week ended April 26 to 38.8% in the week ended May 17,” it said.
