New Delhi: The small relaxations in the lockdown since April 20 have not had any positive impact on the unemployment rate yet as the unemployment rate in India continues to rise. According to the report by Center for Monitoring Indian Economy (CMIE) the unemployment rate in the country was 24 percent for the week ending May 17. This is the same as it was in the preceding month.
However, the relaxation seems to have had an impact on the labour participation rate. This has bounced back from its lowest level of 35.4 per cent in the week ended April 26. In the next week ended May 3, it scaled back to 36.2 per cent. And, then, shot up smartly to 37.6 per cent in the week ended May 10 and now, in the latest week of May 17 it increased to an even better 38.8 per cent.
The report says that it would be a big challenge for the government to restart the economy after lifting the lockdown. It may take a long time for the economy to improve.
Unemployment in Urban and Rural India
The Corona crisis and the lockdown have resulted in a tremendous reduction in employment in India. Urban India has a higher unemployment rate of 27 per cent compared to rural India’s 23 per cent. And, it has a lower labour participation rate of 34 per cent compared to 41 per cent in rural India. Less than 25 per cent of urban working age population is employed. Urban India has the better educated and better skilled labour.
