Unemployment Rate Touches 4-Month Low As 3.2 Million People Become Jobless In July

The world has changed drastically in the past one and a half years. The pandemic has resulted in tragic deaths of a large number of human lives. As the government implement necessary quarantines and social distancing practices to contain the pandemic, the country has been going through a series of lockdowns and shutdowns. The magnitude and speed of collapse in the activities are unlike anything experienced in our lifetimes.

As per the Centre for Monitoring Indian Economy (CMIE), about 3.2 million salaried individuals had lost their jobs in July despite the pandemic's second wave slowing down and steady improvement in the economic activity across the country.

Overall Job Loss

More or less 76.49 million people were employed in salaried jobs by July-end, lower than the 79.7 million people in June, according to the latest data by the CMIE. Out of the total jobs lost, nearly 2.6 million are from urban India, where the number of salaried people fell from 48.71 million in June to 46.15 million in July.

However, the overall job loss rate in the country dropped to a four-month low of 6.95% compared to 9.17% in June. The rural jobless rate slid to 6.3%, while urban unemployment stayed above 8%. Private consumption contributes about 60% to the country's gross domestic product return of a job is a sign of recovery in the economy.

Impact Of COVID

CMIE stated the variety of small merchants and wage labourers fall of as much as 30.42 million, or nearly 2.4 million greater than June. In contrast, three million farmers had been added in July.

Labour economists mentioned the structural weak points of the roles market is a significant element behind the job losses in July. Consumer Pyramids Household Survey knowledge of CMIE signifies a V-shaped recovery is underway once more after the second wave of Covid-19; however, it will be clever to attend for extra knowledge earlier than reaching any conclusion on recovery CMIE mentioned.

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