New Delhi: India’s overall unemployment rate fell in July as rural areas saw increased demand for agriculture labour with the onset of monsoon rains.
The total joblessness rate fell to 7.95% in July, from 8.45% in June, according to data released by private forecaster Centre for Monitoring Indian Economy (CMIE).
Rural unemployment rate fell to 7.89%, from 8.73% in June, while urban unemployment rate ticked up, to 8.06% from 7.87% in the same period.
After a slow start, monsoon rains that water nearly half of the nation’s
farmlands have picked up pace, potentially bolstering the outlook for agriculture production and economic growth. Rains have been 4% above normal so far this season.
Rural joblessness rate typically falls in July due to increased demand for labourers for farming work. Unemployment rate ticks up again in August after the sowing is done, past data showed.
While the agriculture sector saw activity with improved rains, demand
for labour from rural non-agriculture sector dropped in July, said
Mahesh Vyas, managing director of CMIE.
“This led to a fall in rural labour seeking employment, which in
turn led to a fall in the rural employment rate,” he said.
The labour force in rural India fell by five million, the data showed. Labour force participation rate in urban areas also fell, indicating broader weakness in the economy.
Creating enough jobs for Indians is crucial for Prime Minister Narendra
Modi as he seeks a rare third term in office in the national polls next year.
His administration is distributing appointment letters as part of a promise to provide one million government jobs by the end of this year amid wide discontent over rising unemployment.
Last month, data analysis from cmie, showed that the labour participation rate in India decreased from 40.1 per cent in the financial year 2021-22 to 39.5 per cent in the financial year 2022-23.
