India’s unemployment rose to 2-year high in Oct: CMIE

NT Correspondent

New Delhi: The unemployment rate in India rose to 10.05% in October, marking the highest level since May 2021, as reported by the Centre for Monitoring Indian Economy.

This private research organization calculates India's unemployment rate by analysing a panel of over 1.78 lakh households. In October, rural unemployment surged from 6.2% to 10.82%, while urban areas experienced an unemployment rate of 8.44%, reported Bloomberg.

This increase in joblessness in October was associated with nearly 10 million people entering the job market, according to the think tank.

The weak monsoon, with India experiencing its lowest August rainfall since 1901 and the sixth lowest October rainfall in 123 years in the south, had a significant impact on rural employment, which is dependent on agriculture.

On the other hand, urban employment fared better, attributed to growth in manufacturing and consumption.

Many economists and policy researchers have turned to the Centre for Monitoring Indian Economy's data due to the absence of monthly unemployment figures and other critical economic data.

However, in January, the government expressed reservations about the scientific rigor and norms adherence of unemployment surveys conducted by private organizations, without directly mentioning the think tank.

The Centre's recent data indicated an unemployment rate of 3.2% for the year 2022-2023, while the government's annual Economic Survey in January projected a GDP growth of 6% to 6.8% for 2023-2024.