New Delhi (TIP): The labour market is in its worst condition since the nationwide lockdown months of April and May 2020, the Centre for Monitoring Indian Economy said in a report. As per CMIE data, the unemployment rate that reached 11.9 per cent in May, continued to rise into early June.
The 30-day moving average unemployment rate, as of June 6, was 13 per cent.
Separately, in the Consumer Pyramids Households Survey released by CMIE for January-April 2021, it noted that office workers have been relatively safer than non-office workers during the pandemic, while the agricultural sector is overheated.
The non-office workers’ employment rose to 36 million during January-April after falling to 32 million (September-December 2020) and 31 million (May-August 2020) from 41 million (January-April 2020). Agricultural sector’s employment stood at 153 million each in January-April and September-December 2020, and at 157 million in May-August 2020, much higher than 144 million level seen a year ago in January-April 2020.
Consumption demand, picked up in September-December 2020, but then dropped again in January-April 2021, with demand for heavy appliances the worst hit.
Last four weeks have seen a particularly sharp deterioration in labour market conditions. “The downturn began in the week ended May 16. During this week, the labour participation rate was at 40.5 per cent, which was higher by a whisker than the average 40.4 per cent rate around which this ratio has been hovering for several months since the 2020 lockdown,” CMIE’s CEO Mahesh Vyas said in the report.