As states go into lockdowns and impose restrictions amid the second wave of Covid-19, the unemployment rate in April is likely to increase to nearly 8 per cent from 6.5 per cent in March, according to the Centre for Monitoring Indian Economy (CMIE).
CMIE’s CEO Mahesh Vyas said that fast frequency labour statistics indicate that labour market conditions have been deteriorating in April 2021.
“The labour participation rate (LPR) looks unlikely to fall in April. The 30-day moving average LPR indicates that the ratio was rising till April 15 when it peaked at 40.8 per cent. Then it started falling, but it is unlikely to fall to a level lower than that of March 2021,” he said.
Unless there is an unusual bounce in the last week, the April LPR is likely to stabilise at its March level of 40.2 per cent, as per CMIE.
US economy grows at 6.4% in March quarter
The US economy grew at a brisk 6.4% annual rate last quarter — a show of strength fuelled by government aid and declining viral cases that could drive further gains as the nation rebounds with unusual speed from the pandemic recession.
Thursday’s report from the Commerce Department estimated the nation’s GDP accelerated in the January-March quarter from a 4.3% annual gain in the final quarter of 2020.
Growth in the current April-June period is expected to be faster still, potentially reaching a 10% annual pace or more, led by an increase in people willing and able to travel, shop, dine out and otherwise resume their spending habits.