NEW DELHI: The unemployment rate (UR) in India has dropped to a six-month low in July at 6.80%, driven by a fall in rural unemployment. It stood at 7.80% in June. The rural unemployment rate in the country saw a significant fall to 6.14% in July as against 8.03% in June. The urban unemployment rate in the month, however, has increased to 8.21% from 7.30% in June.
The joblessness rate was at its lowest before July in January this year at 6.56%. In terms of states, Haryana saw the highest UR in July at 26.9% followed by Jammu & Kashmir at 20.2%, Rajasthan at 19.1% and Bihar at 18.8%. At the same time, the lowest UR was seen by Chhattisgarh at 0.8% followed by Odisha at 0.9%, Meghalaya at 1.5% and Madhya Pradesh at 2%.
Experts say the fall in rural unemployment could be because of steady monsoons, which have led to a pick-up in agricultural activity. Mahesh Bhatt, chief business officer, TeamLease Services says the major uptick in employment is due to public investments in PLI schemes – in solar cell manufacturing and in bulk drugs.
“Also, timely rainfall has led to a pick-up in agricultural activity. The government’s Rs 2.65 lakh crore stimulus package is providing liquidity support to industries like tourism, aviation, construction, and Housing,” he said. “Expected roll-out of new labour codes is also creating positive sentiments in the employment market,” Bhatt added.