Skip to content

India’s lowest unemployment in six months at 6.8% in July: CMIE data

The country’s unemployment rate in July fell to 6.80 per cent, the lowest level in the last six months, amid rising agriculture activities during monsoon, according to Center for Monitoring Indian Economy (CMIE) data.

The unemployment rate dropped to 6.80 per cent in July from 7.80 per cent in June, the CMIE data said.

Rural unemployment declined 6.14 per cent to 272.1 million last month from 265.2 million or 8.03 per cent in June, it said.

On the other hand, urban unemployment jumped to 8.21 per cent in July from 7.80 per cent in June as the number of jobs fell both in industry as well as services.

The employment in urban India fell by 0.6 million, from 125.7 million to 125.1 million, according to the CMIE data.

The month-on-month recovery in employment was partial as the fall in June was 13 million compared to the growth of only 6.3 million jobs in July, CMIE Managing Director and CEO Mahesh Vyas said.

The recovery was mainly in rural areas and in particular in agriculture as the southwest monsoon progressed and kharif sowing activities picked up pace.

The agriculture sector in the rural area absorbed an additional 9.4 million workforce in July, while it shed 8 million in June, Vyas added.

This lower-than-expected absorption of labor into agriculture in July reflects the patchy progress of the southwest monsoon and the correspondingly poor kharif sowing this year.

Rains this year so far have been very poor in Uttar Pradesh and Bihar, Vyas said, adding that data available till July-end reflects that rice cultivation was down 13 per cent mostly in Bihar, Uttar Pradesh and West Bengal.

“Unless the khariff sowing improves, we don’t see improvement in rural employment. However, I expect the monsoon to improve going forward, which will have a positive impact on the employment scenario in rural areas,” Vyas said.

Meanwhile, the urban unemployment jumped to 8.21 per cent in July from 7.80 per cent in June as jobs fell both in industry as well as services, the CMIE data added.

Vyas said that the industrial sector lost 0.2 million jobs in July after having lost 4.3 million during June, while the services sector lost 2.8 million jobs in July after having lost 0.8 million in June.

The industrial and services sectors have been losing jobs for two months, Vyas added.

In May, the employment in the industrial sector had shot up to 108 million, but since then it has declined to 104 million in June and July, Vyas said.

The recovery in industrial jobs was essentially in the construction industry and not in manufacturing, which are of better quality, Vyas noted.

Over 8 million non-farm jobs were lost during June and July, equally both in the industry and services sectors.

“There is a need for more investments to take place, which is likely to take some time. However, we don’t expect any drastic deterioration in the unemployment scenario in the country,” Vyas added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

dear reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Publisher



Leave a Reply

Your email address will not be published.