Urban India sees rising unemployment in August

The 30-day moving average on unemployment by CMIE suggests that the urban unemployment rate was 8.21% on the first day of August, and has dropped only on three days in the month.

Published: 20th August 2021 08:36 AM  |   Last Updated: 20th August 2021 08:40 AM   |  A+A-


Image used for representational purposes (Express Illustrations)

Express News Service

NEW DELHI: While the overall unemployment in the country hovers between 7.02% and 7.62% in August so far, the urban unemployment rate has been on a rise. Urban unemployment has seen a constant rise since August 9 at 8.56% to August 18 at 9.23%, according to CMIE data.

However, the overall unemployment trend shows a decline from the peak of 11.90% in May (owing to the Covid-induced lockdown) to 9.17% in June and 6.95% in July. Urban unemployment also witnessed a significant drop from 14.73% in May to 10.07% in June and 8.30% in July, while showing an upward movement in August.

The 30-day moving average on unemployment by CMIE (Centre for Monitoring Indian Economy) suggests that the urban unemployment rate was 8.21% on the first day of August, and has dropped only on three days in the month. The rural unemployment, on the other hand, has been wavering in the range of 6.45-6.90 in August so far.

According to Lohit Bhatia, President-Workforce Management, Quess Corp, “This is also a time when a majority of the rural workforce returns after sowing and other agri-related activities, with the onset of the monsoon across the country. Hence, we witness reduced labour utilisation rates in rural India.

 As there has been an influx of rural labour to urban cities, there is a larger urban population that is unemployed, which manifests as higher urban unemployment rates. Additionally, rural unemployment has witnessed a decrease due to the temporary drop in size of the rural workforce, as a consequence of this migration.”

Suchita Dutta, executive director of Indian Staffing Federation, said, “The slow rate of vaccination and effects of restrictions delayed the uptake in urban employment.”


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