India’s unemployment rate drops to 4-year low for festival season

Bloomberg | | Posted by Lingamgunta Nirmitha Rao

India’s unemployment rate fell to its lowest in more than four years in September, according to a private research firm, thanks in part to a surge in job creation.

The unemployment rate fell sharply to 6.43%, data from the Center for Monitoring Indian Economy Pvt shows. showed. The position is the lowest since August 2018 and compares with a year-old record of 8.3% in August.

The decline comes as nearly 10 million jobs were added during the month, defying the August trend when workers entering the labor market were unable to find work. In rural areas, the unemployment rate fell from 7.7% in August to 5.8%, while in urban areas it was 7.7%, down from 9.6% in the previous month.

The latest data comes against the backdrop of the holiday season in India, which tends to boost economic activity and boost job growth. Strong demand in the services sector along with continued monsoon rains are also likely to boost employment.

Read also | India’s urban unemployment rate improves to all-time high for all genders and age groups: survey

But the risks are high amid fears of a global recession that could moderate demand. The central bank last week lowered its growth forecast to 7% for the year ended March, even as it implemented a fourth consecutive rate hike that raised borrowing costs to 5.90% – the highest in more than three years – to ease inflationary pressures. curb.

India’s economic expansion has reached one of the fastest rates in the world, but not enough to create jobs. That has sparked some discontent among the country’s youth, as they have given ammunition to opposition parties to ramp up their anti-unemployment rhetoric.

Read more: Powerful Modi-linked Hindu group condemns rising inequality in India

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