Worst phase of unemployment ends, employment is increasing but below pre-lockdown level

Worst phase of unemployment ends, employment is increasing but below pre-lockdown level

July 8, 2020 Off By Vishnu Mahanand

According to the latest CMIE data, the unemployment rate has come down. This can be reduced to a little higher than the figures before lockdown.

Increased economic activity after the lockdown has reduced the unemployment rate. From the latest data, it seems that the worst phase of unemployment is over. According to the latest data from the Center for Monitoring Indian Economy or CMIE, the unemployment rate has come down. This can be reduced to a little higher than the figures before lockdown.

CMIE said, unemployment rate will come down 

Before the lockdown, the unemployment rate in February was 7.76 percent. According to the CMIE’s weekly data, the unemployment rate in the week ending on June 28 increased slightly, to 8.6 percent. During this period it increased by only 0.1 percent. At the same time, during the week ending July 3, the unemployment rate increased by 0.3 percent and it reached 8.9 percent. It increased to 23.5 in May 2020. But it came down to 11 per cent in June. CMIE said that from these figures it seems that the worst phase of unemployment has passed and in terms of unemployment rate we can stop a little above the pre-lockdown period.

Employment figures have improved 

Meanwhile, employment figures have shown improvement. During the week ending July 5, the employment rate was 36.9 percent. The rate was 35.9 percent in June 2020. CMIE says that the employment ratio in the first week of July has been better than in June. Employment may increase further during the coming week of July. But it has to be ensured that employment increases so much that the ratio does not go down. However, according to the latest data from the manufacturing and service sectors, it seems that the employment rate will not increase rapidly.