Indian Unemployment Affected Again, May 2021 Witnesses A Loss Of 10 Million Jobs

The unemployment rate has moved into double-digits. This is not normal for India. The only time the unemployment rate lurched into double-digits was when India was shut down by a stringent nationwide lockdown during April and May 2020, said Mahesh Vyas, CEO of CMIE. 

According to the stats projected on the CMIE website, the unemployment rate touched 14.5 per cent in the week ended on May 16, 2021. In the week, which ended on May 23, it was even higher at 14.7 per cent. Earlier this month, in the week which ended on May 9, it was 8.7 per cent. 

Evidently, the last two weeks have seen a sudden spike in the unemployment rate. The unemployment rate was 8 per cent in April 2021. By May 1, it had reached 9.6 per cent and then by May 23 it was 12.7 per cent. 

The average employment rates have observed 100 points fall in the month of May: 35.8 per cent (as recorded on May 23). These 100 points fall indicates a fall in employment by 10 million. 

If we look at Urban and Rural India separately, the urban unemployment rate has been on the rise since early April 2021. On April 1, the average urban unemployment rate was 7.2 per cent. By May 1, it had reached 9.6 per cent and then by May 23 it was 12.7 per cent. 

Talking about Rural employment Vyas said, " the rise of unemployment in rural India is a more recent phenomenon. Its sharp ascent began in May. During April, the unemployment rate rose from 6.2 per cent as of April 1 to 7.1 per cent by May 1. Then, it fell to 6.7 per cent by May 7 before it began its steep rise. By May 23 it reached 9.7 per cent."

"We still have a week to go before the month closes. The estimated fall in employment may ease or worsen during this time. But losses will remain," Vyas added.