Unemployment in India tops three decades, International Labor Organization report


There has been a huge reduction in employment in India during the Corona transition period. According to the International Labor Organization (ILO), India’s unemployment rate increased to 7.11 percent during 2020. This is the highest level in the last three decades. India’s unemployment rate in the last decade has been the highest among its neighboring countries. Sri Lanka had the highest unemployment rate till 2009.

Due to Corona infection, unemployment is increasing rapidly in the rural areas of the country as well as in the cities. The urban unemployment rate dropped 270 basis points to 17.41 percent for the week ending May 23. However, it is feared that if the situation is not controlled, the unemployment rate in the cities may increase to the highest level of last year i.e. 27.1 percent. Since the second wave of Corona took hold in April, the urban unemployment rate has increased one and a half times so far.

Unemployment is higher in urban areas than in rural areas

Due to the lockdown, jobs are not being created. The ban on moving from one place to another has increased unemployment in the cities. The overall unemployment rate has increased since the start of the second wave of Kovid. During the week ending May 23, 2021, it reached an all-time high of 14.73 per cent, as against 8.16 per cent on April 4. During this period, unemployment in rural areas increased from 8.58 per cent to 13.52 per cent. However, in the week ending May 16, it was slightly higher at 14.34 per cent.

migration of migrant laborers from cities

The Kovid crisis is having a double effect on the employment market of the urban area. On the one hand, there is a shortage of workers due to the rapid pace of migrant workers returning home. This has had an impact on manufacturing. On the other hand, due to the shutdown of manufacturing, workers are not getting work. Many companies in the auto sector have closed their production plants. Like the first wave of Corona, during the second wave too, the unemployment rate has increased significantly in recent times. Especially in the cities the number of employment has decreased.

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