The overall unemployment rate in India for the month of July declined to pre-COVID-19 levels, indicating a notable improvement in the country's job crisis seen during the nationwide lockdown.
Data from the Centre for Monitoring Indian Economy (CMIE) showed that the overall unemployment rate in July came down to 7.43 percent from 10.99 percent in June. Rural unemployment rate in the country during the month fell to 6.6 percent against 10.52 percent in June and the urban unemployment rate was recorded at 9.15 percent against 12.02 percent.
The data is better than March when the overall unemployment rate of the country was 8.75 percent (9.35 percent in urban India and 8.45 percent in rural India).
It is also significantly lower than the unemployment rate of 23.52 percent recorded in April, which was also the highest ever since the Mumbai-based think tank began its survey in 2016. During the month of complete lockdown due to COVID-19, 24.95 percent of the labour force was without work in urban India and 22.89 percent in rural India.
The CMIE Unemployment Survey has become the proxy for evaluating the state of the labour market in the country since its inception. The labour force consists of employed persons and persons who are unemployed but actively looking for jobs. The survey includes a sample size of 43,600 households per month disturbed well across urban and rural areas.
Between, August 2019 and February 2020, the overall joblessness hovered between 8.19 percent and 7.16 percent, according to CMIE data.
The unemployment rate has largely improved due to good monsoon and better sowing season in rural India along with the gradual resumption of the economic activities in urban centers during the month.