Winning Bizness Desk

Mumbai. The unemployment rate in the country rose by 0.68% on a monthly basis to 7.80% of the total work force in June, while it was at the level of 7.12% in May. This increase in unemployment rate is mainly due to the increase in unemployment rate in villages, which shot up by 1.41% on a monthly basis to 8.03% in June. At the same time, talking about the urban unemployment rate, it has increased by 0.91% on a monthly basis to 7.30% in June. This is its lowest figure in the last one year. In May it was at the level of 8.21%. This information has come out from the data of private think tank Center for Monitoring Indian Economy (CMIE).

Thrown out of the labor market

CMIE MD Mahesh Vyas said, around 1.3 crore jobs were lost during June. But the number of unemployed increased by only 30 lakhs as the rest were thrown out of the labor market. This brought down the labor participation rate (LPR) to its lowest in June at 38.8%. It was 40% in the last two months (April-May). About 80 lakh people left employment in the agriculture sector in June.

Decline in employment is worrying

This sharp decline in employment is worrying. In the month of June, rain fell below normal in many parts of the country. Due to this, the work of sowing crops in rural areas has not picked up pace. Rural unemployment has increased due to the delay in the deployment of agricultural laborers.

Monsoon can help

Labor participation may improve in the coming weeks with the monsoon intensifying. About 8 million people lost jobs in the agriculture sector in June, most of them engaged in sowing work. However, 40 lakh people also got work during this period, which was less than in the same period in 2020 and 2021.