Unemployment rate in India hits highest in four months as Covid cases rise
India’s unemployment rate hit a four-month high in December as some states imposed new virus restrictions to contain the growing number of cases.
The unemployment rate rose to 7.91% last month from 7% in November, increasing in both urban and rural areas, according to data from the Center for Monitoring Indian Economy Pvt., A private research firm.
Soaring unemployment signals continued risks for India’s economy, which is expected to post the world’s fastest growing in the year ending March 31. Official estimates due Friday are expected to forecast a 9.5% expansion, down from a 7.3% contraction last time around. year as the government imposed strict restrictions to contain the pandemic.
India on Monday added 33,750 new cases of COVID-19 – the highest single-day figure in more than three months – bringing the confirmed total to 34.9 million infections. The national capital New Delhi has closed cinemas, schools and gymnasiums and introduced restrictions on public gatherings, and states such as West Bengal and Haryana have imposed similar restrictions. Maharashtra, which is Mumbai’s financial hub state, has also placed restrictions on the number of people at rallies.
Globally, young people have found themselves excluded from the workforce and the consequences of the pandemic are expected to persist for years to come. In India, where around one million people enter the labor market each month, although economic growth has rebounded from the depths of the crisis, unemployment has remained well above 6%.
Unemployment data based on CMIE surveys is among the most widely used by economists and researchers, as India lacks reliable official nationwide employment figures, a situation the government aims to address. remedy from the next fiscal year.