On the one hand, while the economy in the country is recovering rapidly and the country's GST collection is reaching new heights, on the other hand, the problem of unemployment in the country is increasing instead of decreasing. This can be gauged from the fact that the unemployment rate of the country increased to 7.83 percent in April.
Unemployment is low in rural areas
It is worth noting that in the last month i.e. March, the unemployment rate of the country was 7.60 percent. This has been revealed in the data released by the Center for Monitoring Indian Economy (CMIE). It has been said in the report that even during April, the urban area has been ahead in terms of an increase in unemployment. This means unemployment has decreased in rural areas as compared to cities. According to the data, the unemployment rate in cities has increased to 9.22 percent from 8.28 percent in March. At the same time, the unemployment rate in rural areas has come down from 7.29 percent in March to 7.18 percent in April.
The impact of sluggish demand and inflation
According to CMIE, Haryana has the highest unemployment rate when it comes to various states of the country. While the name of Rajasthan comes at number two. It has been recorded in Haryana at 34.5 percent and in Rajasthan at 28.8 percent. According to economists, the slow pace of economic recovery amid sluggish domestic demand and rising prices has affected employment opportunities. Significantly, in March, consumer inflation reached a 17-month high of 6.95 percent.
Labor participation also decreased
Mumbai-based CMIE keeps a close eye on employment figures as well as labor participation and releases its figures. According to the report released, there has also been a major decline in labor participation. It was told that the rate of job seekers among the country's workers declined to 39.5 percent in March 2022 as compared to 43.7 percent in March 2019. This confirms that a large number of professionals have stopped looking for jobs.
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