Unemployment rate down in March, fall in employment too

The unemployment rate was continuously growing since November 2018 at 6.7 touching at 7.2 per cent in February this year. The drop to 6.7 per cent, according Centre for Monitoring Indian Economy (CMIE), is significant. However, economy failed to improve on the employment front --employment rate fell down from 42.7 in February to 42.6 per cent.

It may be recalled that the Mody regime was severely criticized by the Opposition parties and economists, blaming the regime for increasing unemployment growth. The latest data, after reporting 5 months of continus growth, is relieving news for the ruling government.

March was the second consecutive month of a fall in the labour force. It was 435 million in January 2019. It shrunk to 431 million in February and then to 430 million in March.

The employment rate in urban India took sharper hit at 37.3 per cent. This was at least 50 basis point lower than the lowest urban employment rate of 37.8 per cent in March 2019., the CMIE claimed. However, employment rate in the rural India improved to 40.9 per cent in March 2019 to 40.4 per cent in February.