Table of Contents
Current Unemployment Rate in India
India continues to grapple with persistent unemployment concerns, marked by fluctuations evident across various regions and sectors. According to a recent Bloomberg report citing data from the Centre for Monitoring Indian Economy (CMIE) for July, the national unemployment rate stands at 7.95 percent as of July 2023.
Additionally, the latest Periodical Labour Force Survey indicates a positive shift in urban areas, revealing a one percent decrease in the unemployment rate for individuals aged 15 and above, standing at 6.6 percent in April-June 2023 compared to the previous year’s 7.6 percent.
Recent weather patterns sweeping across the country have introduced significant economic changes. With rains covering substantial portions of India and impacting nearly half of the agricultural land, expectations for increased farm production have surged. This optimistic development holds the potential to contribute to overall economic growth and bolster labor demand within the agriculture sector.
Unemployment Rate of India
As of March 2023, India’s unemployment rate, according to the Centre for Monitoring Indian Economy (CMIE), stood at 8.11%. In urban areas, the unemployment rate was 7.93%, while in rural areas, it was slightly lower at 7.44%.
Notably, the states with the highest unemployment rates in India include Haryana, Rajasthan, Bihar, Jharkhand, and Jammu & Kashmir. Among the union territories in India, Delhi recorded the highest unemployment rate.
It’s worth mentioning that the unemployment rate in India increased from 8.00% in November to 8.30% in December 2022, marking the highest level in 16 months. These statistics provide insights into the employment challenges faced by different regions across the country.
What is the Unemployment Rate?
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Trend of Last 10 Year Unemployment Rate in India
In India, the issue of unemployment is still a major one, with variations seen across various areas and industries. The latest Bloomberg study cites data from the Centre for Monitoring Indian Economy (CMIE) for September and states that as of September 2023, the country’s overall jobless rate will be 7.95 per cent. The Trends of the Last 10 Year’s Unemployment Rate in India has been mentioned in the table below:
Trend of Last 10-Year Unemployment Rate in India | ||
---|---|---|
S.No | Year | Unemployment Rate in % |
1 | 2023 | 10.05 (as of Oct) |
2 | 2022 | 7.33 |
3 | 2021 | 5.98 |
4 | 2020 | 8.00 |
5 | 2019 | 5.27 |
6 | 2018 | 5.33 |
7 | 2017 | 5.36 |
8 | 2016 | 5.42 |
9 | 2015 | 5.44 |
10 | 2014 | 5.44 |
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 7.95% at present. It is 7.93% in urban India whereas only 7.44% in rural India. India’s daily and monthly unemployment rates are made public by CMIE on 1st March 2023.
Month | Unemployment Rate (%) | ||
India | Urban | Rural | |
October 2023 | 10.05 | ||
Feb 2023 | 7.45 | 7.93 | 7.23 |
Jan 2023 | 7.14 | 8.55 | 6.48 |
Dec 2022 | 8.30 | 10.09 | 7.44 |
Nov 2022 | 8.00 | 8.96 | 7.61 |
Oct 2022 | 7.92 | 7.34 | 8.19 |
Sep 2022 | 6.43 | 7.71 | 5.83 |
Aug 2022 | 8.28 | 9.57 | 7.68 |
Jul 2022 | 6.83 | 8.22 | 6.17 |
Jun 2022 | 7.83 | 7.32 | 8.07 |
May 2022 | 7.14 | 8.24 | 6.63 |
Apr 2022 | 7.83 | 9.22 | 7.18 |
Mar 2022 | 7.57 | 8.28 | 7.24 |
Feb 2022 | 8.11 | 7.57 | 8.37 |
Jan 2022 | 6.56 | 8.14 | 5.8 |
Current Unemployment Rate in India
- According to the Centre for Monitoring Indian Economy (CMIE), India’s unemployment rate in March 2023 was 8.11%.
- The unemployment rate in urban India was 7.93%, while the unemployment rate in rural India was 7.44%.
- The states with the highest unemployment rates in India are Haryana, Rajasthan, Bihar, Jharkhand, Jammu & Kashmir.
- The state with the highest unemployment rate among union territories in India is Delhi.
- The unemployment rate in India rose to 8.30% in December from 8.00% in November. This was the highest level in 16 months.
State | December 2022 | State | December 2022 |
Andhra Pradesh | 7.7 | Maharashtra | 3.1 |
Assam | 4.7 | Meghalaya | 2.7 |
Bihar | 19.1 | Odisha | 0.9 |
Chhattisgarh | 3.4 | Puducherry | 4.7 |
Delhi | 20.8 | Punjab | 6.8 |
Goa | 9.9 | Rajasthan | 28.5 |
Gujarat | 2.3 | Sikkim | 13.6 |
Haryana | 37.4 | Tamil Nadu | 4.1 |
Himachal Pradesh | 7.6 | Telangana | 4.1 |
Jammu & Kashmir | 14.8 | Tripura | 14.3 |
Jharkhand | 18.0 | Uttar Pradesh | 4.3 |
Karnataka | 2.5 | Uttarakhand | 4.2 |
Kerala | 7.4 | West Bengal | 5.5 |
Madhya Pradesh | 3.2 |
Statewise List of Unemployment Rate of India 2023
In December 2022, the Center for Monitoring Indian Economy (CMIE) reported an increase in India’s unemployment rate to 8.30%, marking the highest level in 16 months, up from 8.00% in November. CMIE data also indicated that the urban unemployment rate climbed to 10.09% in December, compared to 8.96% in November, while the rural areas saw a slight decline from 7.55% to 7.44%.
For the year 2022, Haryana recorded the highest state unemployment rate at 37.4%, while Odisha had the lowest rate at 0.9%. The CMIE statistics released on March 1, 2023, provide a comprehensive breakdown of unemployment across different states in India for December 2022, shedding light on the varying employment challenges faced by these regions.
Unemployment rate in India State-wise 2023 | |
State | % of Unemployment Rate in India |
Haryana | 37.4 |
Rajasthan | 28.5 |
Bihar | 19.1 |
Jharkhand | 18 |
Jammu and Kashmir | 14.8 |
Tripura | 14.3 |
Sikkim | 13.6 |
Goa | 9.9 |
Andhra Pradesh | 7.7 |
Himachal Pradesh | 7.6 |
Assam | 4.7 |
Haryana | 3.74 |
Chhattisgarh | 3.4 |
Madhya Pradesh | 3.2 |
Maharashtra | 3.1 |
Karnataka | 2.5 |
Gujrat | 2.3 |
Odisha | 0.9 |
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 |
Andhra Pradesh | 6.2 | 7.1 | 9.2 | 5.3 | 4.4 | 4.5 | 5.8 | 6 | 4.8 | 5.4 | 9.0 |
Assam | 8.5 | 10.2 | 7.7 | 1.2 | 8.2 | 17.2 | 3.7 | NA | 0.4 | 8.1 | 13.2 |
Bihar | 13.3 | 13.9 | 14.4 | 21.1 | 13.3 | 14 | 18.8 | 12.8 | 11.4 | 15.0 | 17.3 |
Chhattisgarh | 3 | 1.7 | 0.6 | 0.6 | 0.8 | 1.2 | 0.8 | 0.4 | 0.1 | 0.9 | 0.1 |
Delhi | 14.1 | 9.3 | 8.9 | 11.2 | 13.6 | 10.2 | 8.9 | 8.2 | 9.6 | 6.7 | 12.6 |
Goa | 11.6 | 12 | 12.7 | 15.5 | 13.4 | 5.5 | 13.7 | 13.7 | 10.9 | NA | 13.6 |
Gujarat | 1.2 | 2.5 | 1.8 | 1.6 | 2.1 | 3 | 2.2 | 2.6 | 1.6 | 1.7 | 2.5 |
Haryana | 23.4 | 30.9 | 26.5 | 34.5 | 24.6 | 30.5 | 26.9 | 37.3 | 22.9 | 31.7 | 30.6 |
Himachal Pradesh | 13.8 | 11.8 | 11.7 | 0.2 | 9.6 | 10.7 | 6.3 | 7.3 | 8.6 | 9.7 | 8.8 |
Jammu & Kashmir | 15.2 | 13.2 | 25 | 15.6 | 18.3 | 17.2 | 20.2 | 32.8 | 23.2 | 22.6 | 22.4 |
Jharkhand | 8.9 | 15 | 14.5 | 14.2 | 13.1 | 12.1 | 14 | 17.3 | 12.2 | 17.1 | 14.3 |
Karnataka | 2.9 | 2 | 1.8 | 2.7 | 4.3 | 3.7 | 3.5 | 3.5 | 3.7 | 2.8 | 1.8 |
Kerala | 5 | 5 | 6.7 | 5.8 | 5.8 | 5.3 | 4.9 | 6.1 | 6.4 | 4.8 | 5.9 |
Madhya Pradesh | 3 | 2.8 | 1.6 | 1.6 | 1.7 | 0.5 | 1.9 | 2.6 | 0.8 | 0.8 | 6.9 |
Maharashtra | 4.2 | 4.3 | 4 | 3.1 | 4.2 | 4.8 | 3.7 | 2.2 | 4 | 4.3 | 3.6 |
Meghalaya | 1.5 | 1.4 | 2 | 2.2 | 4.1 | 2.3 | 1.5 | 2 | 2.3 | 3.5 | 2.3 |
Odisha | 1.8 | 1 | 9.7 | 1.5 | 2.6 | 1.2 | 0.9 | 2.6 | 2.9 | 1.1 | 1.6 |
Puducherry | 7.8 | 3.7 | 4.2 | 5.6 | 5.6 | 0.8 | 2.8 | 5.2 | 3.9 | 2.6 | 2.9 |
Punjab | 9.3 | 9 | 6.9 | 7.2 | 9.2 | 8.5 | 7.7 | 7.4 | 7.2 | 9.1 | 7.8 |
Rajasthan | 18.9 | 32.4 | 24.5 | 28.8 | 22.2 | 29.9 | 19.6 | 31.4 | 23.9 | 31.3 | 25.0 |
Sikkim | NA | NA | NA | 8.7 | 7.5 | 12.7 | 6.5 | NA | NA | 3.9 | 5.7 |
Tamil Nadu | 5.3 | 3.2 | 4.1 | 3.2 | 3.1 | 2.1 | 3 | 7.2 | 4.1 | 3.0 | 3.8 |
Telangana | 0.7 | 12.9 | 6.5 | 9.9 | 9.4 | 10 | 5.8 | 6.9 | 8.6 | 8.8 | 6.0 |
Tripura | 17.1 | 9.8 | 14.1 | 14.6 | 17.4 | 9.4 | 13 | 16.3 | 17 | 10.6 | 14.4 |
Uttar Pradesh | 3 | 2.7 | 4.4 | 2.9 | 3.1 | 2.8 | 3.3 | 3.9 | 4 | 4.1 | 4.1 |
Uttarakhand | 3.5 | 4.6 | 3.5 | 5.3 | 2.9 | 8.7 | NA | NA | 0.5 | 3.3 | 1.2 |
West Bengal | 6.4 | 6.3 | 5.6 | 6.2 | 5.8 | 5.2 | 6.3 | 7.4 | 3.3 | 5.8 | 5.4 |
India | 6.6 | 8.1 | 7.6 | 7.8 | 7.1 | 7.8 | 6.8 | 8.3 | 6.4 | 7.9 | 8.0 |
Highest Unemployment Rate in 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, 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
Or
Unemployment Rate = No. of Unemployed Persons / (No. of Employed Persons + No. of Unemployed Persons)
Causes of Unemployment in India
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 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.