Unemployment Rate of India
Unemployment Rate in India: According to the recent CMIE Report, the unemployment rate in urban areas increased to 10.09% in December from 8.96% the previous month while the rate in rural areas decreased to 7.44% from 7.55%.
According to separate quarterly figures prepared by the state-run National Statistical Office (NSO) and released in November 2022, the unemployment rate decreased to 7.2% in the July-September quarter from 7.6% in the preceding quarter.
Although India’s unemployment rate has historically been high, it is predicted to rise in the next years. In fact, even if the nation’s economy continues to expand at a healthy clip, the Organization for Economic Cooperation and Development (OECD) forecast that India’s jobless rate will quadruple from 4 per cent to 8 per cent by 2022.
From a 6% unemployment rate in 2017, India’s unemployment rate would climb to 8.3% by 2022. According to the estimate, over the next four years, 10 million more people will join the ranks of the unemployed, bringing the total to 220 million by 2022. The government also forecasts that there will be 1 million additional job vacancies over this time period, but it also expects that the number of jobs would not be sufficient to counteract the population expansion in general.
CMIE’s Data on Unemployment Rate in India
The Centre for Monitoring Indian Economy, a private organization (CMIE), estimates India’s unemployment rate in India is around 8.3% at present. It is 10.09% in urban India whereas only 7.44% in rural India. India’s daily and monthly unemployment rates are made public by CMIE on 1st January 2023.
|Month||Unemployment Rate (%)|
Current Unemployment Rate in India
As per the National Statistical Office’s 16th Periodic Labour Force Survey, in the fiscal second quarter that ended on September 30, India’s unemployment rate for those who are 15 years of age or older and live in urban areas dropped from 9.8% to 7.2%, indicating a sustained recovery from the coronavirus pandemic that had left millions of people without jobs. From July to September, the unemployment rate for females (aged 15 and older) in urban areas dropped from 11.6% to 9.4% and for males dropped from 9.3% to 6.6% a year ago.
According to recent CMIE statistics released on 1st January 2023, here is a complete list of the Unemployment Rate in India State-wise in December 2022.
|State||December 2022||State||December 2022|
|Jammu & Kashmir||14.8||Tripura||14.3|
Statewise List of Unemployment Rate of India 2022
Here is the list of the Unemployment Rate in India Statewise and Monthwise as per the CMIE Report:
|STATE||JAN 2022||FEB 2022||MAR 2022||APR 2022||MAY 2022||JUN 2022||JUL 2022||AUG 2022||SEP 2022||Oct 2022||Nov 2022|
|Jammu & Kashmir||15.2||13.2||25||15.6||18.3||17.2||20.2||32.8||23.2||22.6||22.4|
Highest Unemployment Rate of India
Since January 2022, the employment rate has grown, reaching a record high of 37.1% in December 2022. With 28.5% in Rajasthan, 20.8% in Delhi, and 37.4% in Haryana, the unemployment rate increased in December 2022, as per the CMIE recent Report.
Unemployment Rate Calculator
The percentage of persons without a job is known as the unemployment rate. The percentage used to indicate this rate. The unemployment rate fluctuates according to the state of the economy. The employment rate will rise if the economy is struggling and there are fewer jobs available. Similarly to this, it is predicted that the unemployment rate will decrease when a nation’s economy is strong, growing, and offering the general populace a wide variety of job opportunities.
Unemployment Rate = Unemployed / Civilian Labor Force
Unemployment Rate = No. of Unemployed Persons / (No. of Employed Persons + No. of Unemployed Persons)
Unemployment Rate of India UPSC
Every nation deals with the issue of unemployment. India is one of these nations. India’s complicated population and changing work market have made unemployment among its citizens a major worry for both politicians and the general public. Knowing more about India’s unemployment rate can help policymakers put the right measures in place to guarantee that everyone looking for work finds a position they are qualified for. In general, between 2017 and 2022, India’s unemployment rate is projected to increase by 3%.
The National Statistical Office (NSO) report from May 2022 states that the unemployment rate in urban India decreased from 10.3% in the prior quarter to 8.7% in October-December 2021.
Unemployment in India Causes
In every nation, there are a variety of reasons that contribute to unemployment. Whether unemployment is brought on by a drop in the labour force or a lack of jobs determines whether it will be temporary or permanent.
The main causes of unemployment in India are four different forms of unemployment. These four categories of unemployment include structural, frictional, seasonal, and cyclical. Through expansionary monetary policy, we may combat seasonal and cyclical unemployment by raising public spending when times are tough.
A few main causes of unemployment are:
- A sizable population
- The working population’s poor educational attainment or lack of vocational skills.
- Labour-intensive industries experiencing a downturn in private investment, especially the following demonetization.
- Transitioning between the three sectors is challenging due to the poor productivity in the agriculture sector and the dearth of alternatives for agricultural employees.
- Legal difficulties, insufficient government backing, and weak market, financial, and infrastructure ties to small firms render those operations unprofitable due to the cost and compliance overruns.
- Low investments in the manufacturing sector and inadequate infrastructural development, limit secondary sector job opportunities.
The government can build up a public employment program that produces full-time employment at minimum pay levels to create job stability, or it can provide temporary labour to unemployed individuals as part of the food-for-work program. Stabilizing market forces and lowering the trend toward structural changes or the necessity to fire people due to a lack of market demand, will lessen the cyclical type of unemployment.
Unemployment Rate in India FAQs
Q What is the current unemployment rate in India?
Ans. 8.3% is the current unemployment (December 2022) rate in India.
Q What is the unemployment rate in India in 2022?
Ans. 8.3% is the unemployment rate in India in 2022 as per the CMIE’s recent report.
Q Is the unemployment rate high in India?
Ans. India’s unemployment rate in India is around 8.3% at present. It is 10.09% in urban India whereas only 7.44% in rural India.
Q Which state is top in unemployment in India?
Ans. Haryana is the top unemployment state in India.
Q Which country has the highest unemployment?
Ans. South Africa has the highest unemployment in the country.
Q Is unemployment decreasing in India?
Ans. Since January 2022, the employment rate has grown, reaching a record high of 37.1% in December 2022. With 37.4% in Haryana, 28.5% in Rajasthan, & 20.8% in Delhi, the unemployment rate increased in December 2022, as per the CMIE recent Report.