(Anjali Shreya, Intern Journalist): New unemployment figures released by the Center for Monitoring Indian Economy (CMI) have disappointed. Urban unemployment stood at 10 percent in August. India’s unemployment rate was the worst in the formal sector this month. July saw a drop in unemployment figures after the lockdown.
Reduced employment opportunities:
The lockdown exemption was expected to increase employment opportunities, but the unemployment figures released by CMI did not improve in August. According to the data, the urban unemployment rate was 9.15 percent in July, but in August this figure has increased to 9.83 percent. The unemployment rate reaching 9.83 percent means that 1 in 10 people in urban areas is not getting jobs.
Unemployment in rural areas:
The unemployment rate in August was 7.65 percent, higher than the unemployment rate of 6.66 percent in July. The state of Haryana is the worst in terms of unemployment, the unemployment rate in the state is 33.5 percent. This is followed by the Tripura number, where the unemployment rate is 27.9 percent. The unemployment rates in Rajasthan and Goa are 17.5 percent and 16.2 percent respectively.
The decline in GDP growth:
Recently released GDP figures were also disappointing. The country’s GDP growth declined by 23.9 percent in the first quarter. The Indian economy has been witnessing a slowdown for the last two quarters. Manufacturing, construction, business, hotels, transport sectors which account for 45% of the country’s GDP have been affected by the lockdown. Their condition has not improved yet.
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