India’s unemployment rate jumps to 2-year high of 6.9%

India’s unemployment rate jumps to 2-year high of 6.9%

SAM Staff,
Representational image

Unemployment rate in the country rose to 6.9 percent in October — the highest in two years — according to a report by Centre for Monitoring Indian Economy (CMIE).

The estimated number of people employed during October 2018 was 397 million. This was 2.4 percent lower than the rate in October 2017. Around 407 million individuals were estimated to be employed during the same period last year.

Only 39.5 percent of the adult population was employed in October, the report suggests.

Labour participation lowest since January 2016

According to the report, 42.4 percent of India’s adult population was willing to work in October 2018. The labour participation rate is a measure of the proportion of adults who are willing to work.

This labour participation rate was the lowest recorded since January 2016.

Labour participation rate was around 47-48 percent before demonetisation.

However, the participation rate fell sharply after note ban and has still not recovered, the report suggests. The report adds that the rise in proportion rise in September was negated in October.

Job seekers on the rise

According to the report, the number of people unemployed who are actively looking for a job has been on the rise.

As of October 2018, 29.5 million unemployed individuals were actively looking for jobs. This was more than the 21.6 million unemployed individuals looking for jobs in during the same period last year.