India's unemployment rate rises to 4-month high of 8.1% in April: CMIE

Urban unemployment rose to 9.81 per cent from 8.51 per cent during the same period, while in rural areas, it fell marginally to 7.34 per cent in April from 7.47 per cent a month ago.

“The unemployment rate increased owing to a rise in the labour participation rate (LPR),” CMIE’s Natasha Somayya K wrote on its website.

The LPR inched up from 39.77 per cent in March to 41.98 per cent in April—the highest recorded in the past three years, she wrote.

In each of the months post March 2020, when labour participation rate was 41.9 per cent, the LPR was restricted to below 41 per cent. The significant rise in labour participation rate in April, therefore, is surprising, she observed.

“The labour force expanded substantially, by 25.5 million, to 467.6 million in April. This big jump in the number of people who entered the labour force points at a possible increase in optimism about finding employment,” she added.

About 87 per cent of this expanded labour force could secure employment as an additional 22.1 million jobs were created in the month.

CMIE data showed more jobs were created in rural areas. Around 94.6 per cent of the people who joined the rural labour force became employed, while only 54.8 per cent of job seekers in urban areas found new jobs.

Fibre2Fashion News Desk (DS)