Weak Monsoon Pushes Unemployment Rate To Two Year High Level In Oct 23: CMIE

New Delhi, Nov 2 (KNN) India’s unemployment rate in October reached the highest in more than two years, reported Business standard citing Centre for Monitoring Indian Economy Ltd.

The overall rate rose to 10.05 per cent last month from 7.09 per cent in September. This is highest since May 2021. Rural unemployment jumped to 10.82 per cent from 6.2 per cent, while the urban rate eased slightly to 8.44 per cent.

As per the report, the weakest monsoon rains in five years is weighing on farming output in the world’s second-biggest producer of rice, wheat and sugar. In urban areas, though, economic activity has been relatively strong, with manufacturing and consumption expanding. 

The government publishes a country-wide unemployment rate only on an annual basis, and a rate for urban areas every quarter. The most recent official report, released in October, puts the unemployment rate for the country at 3.2 per cent for 2022-2023. 

While India’s economy is expected to grow more than 6 per cent this year and next, among the fastest in the world, that’s still not rapid enough to create jobs for the millions that need it. The CMIE data shows nearly 10 million people entered the job market in October in the hopes of finding some work.

Last month, Indian tech-services outsourcing firms, including Infosys Ltd. and Wipro Ltd., announced plan to halt hiring of college graduates, potentially leaving thousands of fresh engineering students without jobs. That could fuel discontent among the country’s youth and create problems for Prime Minister Narendra Modi as he seeks a third term in office in elections next year. 

(KNN Bureau)