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Indias Unemployment Rate Rises To 3-Month

By FnF Correspondent | PUBLISHED: 01, Apr 2023, 20:44 pm IST | UPDATED: 08, Apr 2023, 21:05 pm IST

Indias Unemployment Rate Rises To 3-Month

New Delhi: India's unemployment rose to a three-month high in March to 7.8 percent as the country's labour markets deteriorated, according to data from the Centre for Monitoring Indian Economy (CMIE). The unemployment rate in the country surged in December 2022 to 8.30 percent but declined in January to 7.14 percent. It edged up again in February to 7.45 percent, the CMIE data released on Saturday showed.

During March, the unemployment rate in urban areas was at 8.4 percent while in rural areas, it was at 7.5 percent. "India's labour markets deteriorated in March 2023.

The unemployment rate increased from 7.5 percent in February to 7.8 percent in March. The effect of this is compounded by the simultaneous fall in the labour force participation rate, which fell from 39.9 percent to 39.8 percent," CMIE managing director Mahesh Vyas told PTI.

This led to a fall in the employment rate from 36.9 percent in February to 36.7 percent in March, Vyas said, adding that employment fell from 409.9 million to 407.6 million.

Among the states, unemployment was the highest in Haryana at 26.8 percent closely followed by Rajasthan at 26.4 percent, Jammu and Kashmir at 23.1 percent, Sikkim 20.7 percent, Bihar 17.6 percent, and Jharkhand 17.5 percent.

Unemployment was the lowest in Uttarakhand and Chhattisgarh at 0.8 percent each followed by Puducherry at 1.5 percent, Gujarat 1.8 percent, Karnataka 2.3 percent, and Meghalaya and Odisha at 2.6 percent.

CIEL HR Services Director and CEO Aditya Mishra said that post the festive season of October-January, employment in retail, supply chain, logistics, financial services and e-commerce has declined.

"Our sectors of IT, Technology and Startups have tightened their belts leading to a slowdown in fresh hiring. Thirdly, March being the month of financial year-end and examinations, the sectors of leisure travel, tourism, entertainment and hospitality are not witnessing high demand.

"These factors have reduced the employment drive. Manufacturing, engineering, construction, and infrastructure have kept the job markets warm. The results of March are a combination of all these factors. We will see a pickup in April," he added.

TeamLease Services co-founder Rituparna Chakraborty said the unemployment data is reflective of a pensive mood noticed in the current economic environment.

"India Inc is being thoughtful and weighing each step with caution and hence has momentarily tempered down hiring as what is happening globally at some point can affect India too. However, for India it could only be a passing shower as we are far more resilient to external forces, she added.