Unemployment in India hits 16-month high of 8.3% in December

But, economy sees robust increase in labour participation rate at 40.48% — the highest in 12 months

Update: 2023-01-01 10:18 GMT

India’s unemployment rate rose to 8.3 per cent in December, the highest in 16 months, from 8 per cent in November 2022, data from the Centre for Monitoring Indian Economy (CMIE) revealed on Sunday. 

The Mumbai-based private think-tank said the nation’s urban unemployment rate rose to 10.09 per cent in December from 8.96 per cent in the previous month, while the rural unemployment rate eased to 7.44 per cent from 7.55 per cent. 

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Agency reports quoted Mahesh Vyas, Managing Director of CMIE, as saying the rise in the unemployment rate was “not as bad as it may seem,” as it came on top of a healthy increase in the labour participation rate, which shot up to 40.48 per cent in December, the highest in 12 months.

Rise in unemployment rate

“Most importantly, the employment rate has increased in December to 37.1 per cent, which again is the highest since January 2022,” he told Reuters.

In December, the unemployment rate rose to 37.4 per cent in Haryana, followed by 28.5 per cent in Rajasthan and 20.8 per cent in Delhi, CMIE data showed.

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According to separate quarterly figures prepared by the state-run National Statistical Office (NSO) and released in November, the unemployment rate decreased to 7.2 per cent in the July-September quarter from 7.6 per cent in the preceding quarter.

Opposition stance

The rising unemployment rate has been among the points raised by Opposition parties against the NDA government at the Centre. In his Bharat Jodo Yatra, Congress leader Rahul Gandhi has been talking about high prices and unemployment apart from the divisive politics of the BJP government.

“India needs to move from a single focus on GDP growth to growth with employment, skilling of youth and creating production capacities with export prospects,” said Rahul at a press conference on Saturday.

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