Unemployment rate on the rise in rural area: Reports

The unemployment rate in rural areas of the country has increased which has become a major concern for the authorities. The average employment rate during the first quarter of 2020 was 39.2 per cent. In April 2020, the rate fell to 27.2 per cent. It recovered a bit in May to 29.2 per cent and then smartly in June to 35.9 per cent.

Hyderabad: With the unemployment rate rising marginally to 8.21% against 7.94%, one can say that rural India could be bouncing back to normal. The concern is that rate of unemployment is higher in the rural as compared to urban areas.

According to fresh data released by the Centre for Monitoring of Indian Economy (CMIE), Unemployment in rural areas was 7.1% last week. It has risen 7.66% this week, meaning that unemployment in rural areas has increased by 0.56% this week from last week.

Unemployment rate is increasing in rural area

A serious challenge that India is facing the employment rate which has been on a gradually declining gradient. It has fallen from around 43 per cent in 2016 to less than 40 per cent in 2019.

The average employment rate during the first quarter of 2020 was 39.2 per cent. In April 2020, the rate fell to 27.2 per cent. It recovered a bit in May to 29.2 per cent and then smartly in June to 35.9 per cent.

Unemployment rate is increasing in rural area

Why Unemployment rate is increasing in rural areas:

On the one hand, in the unlocked phase, many factories and offices have been opened in the city and many people have been able to work again. But during the lockdown period, millions of migrants returned to their villages. They are afraid to come to town. As a result, the demand for jobs in the village is increasing.

• Another major problem is that the 100-day work that the government is announcing in the MGNREGA sector is not far-reaching. In many cases after getting work for the first ten days, they have to sit for the next twenty days. Which is not very profitable for them.
• In Rural India, the sowing season is nearing an end, monsoon will pick up in parts of India, the calamities like floods will restrict activities both in the agriculture sector and partially limit low-end self-employment avenues. In Urban areas, which is even seeking patches of lockdown due to COVID-19, the slow recovery of businesses, will limit a faster recovery than the country saw in the month of June.
• Cultivation of Kharif season is over and now that the rain has started and they do not get employment immediately, this resulted to increase in rural unemployment. The rural non-farm sector is not very vibrant sector.
• Many People open their small shops, vegetable vendors, tea shop but that is not gainful employment. Naturally, people, who went back to rural areas if they do not get anything substantial there will be a rise in the unemployment rate.