India’s Unemployment Rate Increases By 7.8 Percent, Reaches A Three-Month High Record

India’s unemployment rate surged to a three-month high in March, accounting for 7.8 percent of the country’s labor markets deteriorated. The data has been extracted from the Centre for Monitoring Indian Economy. The Unemployment rate in the country increased in December 2022 by 8.3 percent but has declined significantly to 7.14 percent. Again, the value skyrocketed to 7.45 percent.

It was found that in March, the unemployment rate accounted for 8.4 percent, while in the rural areas, it accounted for 7.5 percent.

The managing director of CMIE has opened up to valid media sources stating that India’s labor markets have worsened in March 2023. The unemployment rate spiked by 7.5 percent in February to 7.8 percent in March. The effect has been because of the significant fall in the labor force market participation rate, which has declined from 39.9 to 39.8 percent.

This, in turn, has resulted in a decline in the rate of employment as it declined from 409.9 million to 407.6 million.

Among the states in India, Haryana recorded the highest unemployment rate accounting for 26.8 percent followed by Jammu and Kashmir, Sikkim, Bihar, and Jharkhand, with the rate of unemployment accounting for 26.4, 23.1, 20.7, 17.6 and 17.5 percent respectively.

The unemployment rates were the lowest in Uttarakhand and Chattisgarh, accounting for 0.8 percent followed by Pondicherry, Gujarat, Karnataka, Meghalaya, and Odisha.

The HR Services Director and the CEO, Aditya Mishra, have responded to the situation stating that after the festive season in October-January, employment in retail, supply, and logistics has declined significantly.

He has stated that the sectors in IT, Technology, and Startups have tightened their belts leading to the freeze in hiring in certain processes. He has even implied that after March being the end of the financial year meant that there was a decrease in the demands for leisure, tourism, entertainment, and other sectors.

These factors have reduced the employment rate in diverse sectors like manufacturing, engineering, construction, and infrastructure. These sectors have maintained a freeze in the job market. India will see a rise in employment in April.

Riturparna Chakraborty, the founder of TeamLease Services has stated that the unemployment data is reflected by the pensive mood because of the present economic environment.

She has further added that the nation is being careful in weighing each step and has momentarily paused hiring. But, the situation has proved to be slower for India as it is more resilient to external forces.

Improving Unemployment Situation is Integral For India: Union Minister

Jitendra Singh, Union Minister of India, has addressed the situation in the Lok Sabha and stated that the generation of employment coupled with improving employability is the priority of the Indian government. The Indian government has taken multiple steps to deal with the unemployment problems in the nation.

Furthermore, the government of India has announced the Aatma Nirbhar Bharat Package to provide stimulus to businesses and undo the adverse effects of covid-19. The government is providing a package of 27 lakh crore INR under the package.

According to him, the government is implementing Production Linked Incentive (PLI) schemes worth Rs 1.97 lakh crore over five years beginning in 2021-22, with the potential to create 60 lakh new jobs.

Singh stated that the government of India organizes Rozgar Melas to fill vacancies in mission mode throughout all central government ministries, departments, central public sector undertakings (CPSUs), nongovernmental organizations, and education and health institutions, among others, on time.

According to the minister, the government of India is encouraging various projects involving significant investment and public expenditure on schemes such as the Prime Minister’s Employment Generation Programme (PMEGP), Pt Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS),  and Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM).

Aside from these initiatives, he said, the government’s flagship programs like Make in India, Start-up India, Stand-up India, Digital India, and Housing for All are all aimed at creating job opportunities.

Edited by Prakriti Arora