Unemployment rate of India jumps to five-week high

The overall Unemployment Rate of India has jumped to a five-week high, while rural unemployment rate touched an eight-week high as the crop sowing season has mostly come to an end and states imposed micro-lockdowns to curb the spread of the virus.

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The overall unemployment rate climbed to 8.67% in the week ended 9 August as against 7.19% in the week to 2 August, according to fresh data from the Centre of Monitoring Indian Economy (CMIE).

This is the highest unemployment rate since the week ended 12 July and even higher than the overall monthly joblessness of 7.43% recorded in July.

The rural unemployment rate jumped almost two percentage points in the week ended 9 August to an eight-week high of 8.37% from 6.47% in the previous week as monsoon intensified, and the crop sowing season mostly ended among other reasons.

According to CMIE data, rural unemployment rate was higher than this in the week to 14 June at 10.96%.

Urban unemployment, which was declining slowly, showedok a reverse trend to record a 9.31% unemployment rate in the week to 9 August as against 8.73% in the previous week.

Economists and experts said migrants have started coming back from villages due to lack of opportunities and shrinking capacity of agriculture sector, demand from sectors like constructions and textiles to resume activities in cities and urban centers, and a deep wage disparity.