The unemployment in India is dropped significantly in July 2021 as businesses are slowly resuming their operations after struggling with the second wave of Covid19.
According to CMIE, the unemployment rate in India has dropped to 6.95% in July 2021 from 9.17% recorded in the previous month.
The government is slowly but carefully giving relaxation in the lockdown. As a result, businesses are back to recruitment mode, which directly impacts the unemployment rate in India.
Unemployment in India: Big Picture
- In July 2021, unemployment in India declined to 6.95%, painting a picture of improving business conditions in India.
- In June 2021, Dazeinfo reported about the falling unemployment rate which came down to single-digit after the horrific double-digit unemployment rate recorded in May 2021.
- In May 2021, the unemployment rate in India touched 12 months high to 11.90% as India struggled the worst phase of the Covid-19 situation. Many businesses suspended their operations as India came to a standstill, thanks to the nationwide lockdown.
- The unemployment rate in the Urban area is declined to 8.30%. The situation in rural India is comparatively better, with 6.34% unemployment rate recorded in July 2021.
- Haryana and Rajasthan emerged as the worst states with the highest unemployment rate in India. Haryana tops the list with 28.1% unemployment rate, followed by Rajasthan with 21%.
- Bihar, Delhi, Goa, Himachal Pradesh, Jammu & Kashmir, Tripura are the other states where the rate of unemployment is in double-digit.
- With just 1.1%, Odisha tops the chart with the lowest unemployment rate in India in July 2021.
Food For Thought
India was the worst-hit country from the pandemic in 2021. The employment situation in India has been seesaw as the rate continues to decline and then jumps up drastically. The sudden rise in December last year and again in May 2021 is a clear example that India is yet to achieve a stable business condition, similar to the pre-Covid-era.
While people and authorities are pretty optimistic about the future of employment, the rising numbers once again indicating that a loose end could bring back the horrific memories of the peak of Covid19. On July 19, India recorded 30,000 new cases, while by the end of July 2021, the number has increased to nearly 41,000. Experts warn about the possible third wave in September, albeit it may not be that severe as the second wave. Will it affect the declining unemployment rate in India? We can only wait and watch!