The unemployment rate fell to its pre-lockdown level of 8.5% in the week ended June 21, led by big gains in the rural areas, economic think tank Centre for Monitoring Indian Economy (CMIE) said. The rate had gone up from 8.75% in March to 23.5% in April and May. It had peaked at 27.1% in the week ended May 3. The CMIE survey showed the gains in rural areas may even be bigger in the months ahead. The latest data on the jobs front provides huge relief to the government which has been grappling with job losses due to the coronavirus pandemic.

The heartening story is that rural India is witnessing an increase in jobs thanks to the rural job guarantee programme. “The big gain in employment is happening in rural India. And, it may see bigger gains in the months to come or at least sustain the current gains,” Mahesh Vyas, managing director and CEO of CMIE, said.

He said the unemployment rate dropped to 7.26% in rural India in the week ended June 21. This is lower than it was in the pre-lockdown week ended March 22 when the rate was 8.3%. It is lower than the average unemployment rate in February and March which was 7.34% and 8.4%, respectively. It is much lower than the average 13-week lockdown period average of 20.3% but still a little higher than the 13-week average pre-lockdown rate of 6.8%.
“While relaxation of the lockdown has helped in alleviating the unemployment stress in general, rural India has apparently gained by the massive sudden increase in Mahatma Gandhi National Rural Employment Guarantee Scheme activities and also by a sharp increase in kharif sowing this year,” Vyas said.

The unemployment rate fell to its pre-lockdown level of 8.5% in the week ended June 21, led by big gains in the rural areas, economic think tank Centre for Monitoring Indian Economy (CMIE) said. The rate had gone up from 8.75% in March to 23.5% in April and May. It had peaked at 27.1% in the week ended May 3. The CMIE survey showed the gains in rural areas may even be bigger in the months ahead. The latest data on the jobs front provides huge relief to the government which has been grappling with job losses due to the coronavirus pandemic.

The heartening story is that rural India is witnessing an increase in jobs thanks to the rural job guarantee programme. “The big gain in employment is happening in rural India. And, it may see bigger gains in the months to come or at least sustain the current gains,” Mahesh Vyas, managing director and CEO of CMIE, said.

He said the unemployment rate dropped to 7.26% in rural India in the week ended June 21. This is lower than it was in the pre-lockdown week ended March 22 when the rate was 8.3%. It is lower than the average unemployment rate in February and March which was 7.34% and 8.4%, respectively. It is much lower than the average 13-week lockdown period average of 20.3% but still a little higher than the 13-week average pre-lockdown rate of 6.8%.
“While relaxation of the lockdown has helped in alleviating the unemployment stress in general, rural India has apparently gained by the massive sudden increase in Mahatma Gandhi National Rural Employment Guarantee Scheme activities and also by a sharp increase in kharif sowing this year,” Vyas said.