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India’s Falling Jobless Rate and Risks to Employment- CMIE Findings

Falling Jobless Rate and Risks to Employment- Relevance for UPSC Exam

  • GS Paper 3: Indian Economy- Issues relating to planning, mobilization of resources, growth, development and employment.

India's Falling Jobless Rate and Risks to Employment- CMIE Findings_40.1

 

Falling Jobless Rate and Risks to Employment- Context

  • Centre for Monitoring Indian Economy (CMIE) data shows that India’s unemployment rate touched a four-month high of 7.9 percent in December.
  • The CMIE numbers show a significant declining trend even before the economic activity was affected due to the fresh Covid-19 restrictions imposed in many states.

India's Falling Jobless Rate and Risks to Employment- CMIE Findings_50.1

 

Falling Jobless Rate and Risks to Employment- Key Findings

  • Rising Unemployment: The unemployment rate rose to 7.9 % in December. It stood at 7 % in November last year and 9.1 % in December 2020.
  • Rising Urban Unemployment: Urban unemployment rate rose to 9.3 % in December from 8.2 % in the previous month while the rural unemployment rate increased to 7.3 % from 6.4 %.
    • The urban unemployment rate on a weekly level had spiked to a double-digit rate to around 10.09 percent in mid-December.
  • Significance of Findings: These numbers are significant as they show a declining trend even before the new Covid-19 wave has led to fresh restrictions being imposed on business.

Aatamanirbhar Skilled Employee-Employer Mapping Portal (ASEEM Portal)

 

Falling Jobless Rate and Risks to Employment- Risks to Employment

  • Risks to Better Paying Jobs: Urban employment is a proxy for better-paying jobs and a decline in these numbers reflects the impact on better-paying organized sector jobs.
  • Omicron (Covid-19 Variant) Threat: Amid the threat posed by the Omicron variant, many states imposing fresh curbs, economic activity, and consumption levels have been affected.
    • This could adversely affect economic recovery further going ahead.

 

The All-India Quarterly Establishment-based Employment Survey

The All-India Quarterly Establishment-based Employment Survey

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