The unemployment rate has decreased in the week ending 26 April amid the lockdown. This week the unemployment rate stood at 21.1 per cent, which is much lower than its previous week’s 26.2 per cent. This information has been revealed in the latest report of the Center for Monitoring Indian Economy (CMIE). However, it is a matter of concern that more than 7 crore people have left work during the lockdown.
This is the lowest unemployment rate during the lockdown. However, the unemployment rate is still very high. Significantly, according to an earlier CMIE report, the unemployment rate in March reached the highest level of 8.7 per cent in the last 43 months.
Millions of people are not working
- However, in the week ending 26 April, it is a matter of concern that the labour participation rate has declined further.
- According to the report, the unemployment rate ranged from 21 to 26 per cent for the entire lockdown period, but during this time the labour participation rate declined every week.
- Labour participation fell to 42.6 per cent in the week before the March 22 lockdown but fell further to just 35.4 per cent in the week ended 26 April. This means that about 7.2 per cent of the working population left the work.
More than 7 crores are still unemployed
- According to the report, there is considered to be a working population of about one billion in the country. This means that over 7.2 crore people left work during the lockdown.
- The working population is just 35.4 crore, of which 21.1 per cent are unemployed. That is, the number of unemployed people seeking jobs was around 7.6 crore. Unemployed is considered as one who wants to work but is not getting employment.
Giving gains in lockdown
According to the report, some softening in the lockdown benefits in terms of employment. This is evident from the improvement in employment in the week of 26 April. The employment rate was 26.1 per cent in the week of April 19, while it rose to 27.9 per cent in the week of April 26. In rural areas, the employment rate reached 29.4 per cent in the week of April 26 as compared to 27 per cent on April 19.
According to CMIE, in the first week of March, the employment situation in the country started to deteriorate and at the end of the month, the situation deteriorated significantly. CMIE is a private think tank. According to the CMIE data, the employment situation remained miserable even in the first week of April 2020.