India’s unemployment rate dropped to a one-year low in September as joblessness in rural areas fell even though monsoon rains were weak. The unemployment rate fell back to 7.09% in September, a substantial reduction as compared to the rate being 8.10% in August, according to the data from Centre for Monitoring Indian Economy (CMIE). The number is significant because it is the lowest since September 2022.
Rural employment reduced to 6.20%, from 7.11% in August, while urban employment rate reduced to 8.94% from 10.09% in August. Monsoon rains this year were the weakest in five years, with the June-September being 6% less than the long-term average. Still, the agricultural activity in the country was not impacted much.
As a result of the upcoming festival season in India, urban unemployment also recorded a dip. This is because employers usually hike up the hiring rate during this season – especially in the gig and contract employment segment – ahead of Diwali.
Creating enough jobs for the country’s 1.4 billion people remains the key task for the current government ahead of the 2024 elections. Last month, PM Narendra Modi distributed 51,000 appointment letters to new recruits as part of a special employment initiative amid discontent over rising joblessness.
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