India’s Unemployment Rate Hits Three-Month High of 7.8% in March 2023: CMIE Report

02-04-2023 : According to data released by the Centre for Monitoring Indian Economy (CMIE), India’s unemployment rate reached a three-month high of 7.8% in March 2023. The country’s labour markets have been deteriorating, causing an increase in the unemployment rate. The data also showed that the unemployment rate had surged to 8.3% in December 2022, decreased to 7.14% in January and then edged up to 7.45% in February.

The unemployment rate in urban areas was recorded at 8.4%, while in rural areas, it stood at 7.5% in March. CMIE’s Managing Director, Mahesh Vyas, said that the labour markets in India had deteriorated, leading to a simultaneous fall in the labour force participation rate from 39.9% to 39.8%. This resulted in a decline in the employment rate from 36.9% in February to 36.7% in March. Vyas added that the number of employed individuals fell from 409.9 million to 407.6 million during this period.

The data also revealed that the unemployment rate was the highest in Haryana at 26.8%, closely followed by Rajasthan at 26.4%, Jammu and Kashmir at 23.1%, Sikkim at 20.7%, Bihar at 17.6% and Jharkhand at 17.5%. In contrast, unemployment was the lowest in Uttarakhand and Chhattisgarh.

The rise in unemployment is a cause for concern as it can lead to economic slowdowns. The government and policymakers need to take measures to address this issue by creating more employment opportunities and promoting job growth in the country.