Unemployment rate lowest in six months, falls to 6.8%
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NEW DELHI: India's unemployment rate (UR) fell to a six-month low of 6.80% in July, reflecting a drop in rural unemployment. It was 7.80% in June. The country's rural unemployment rate declined to 6.14 percent in July from 8.03 percent in June. But the urban unemployment rate for the month rose to 8.21 percent from 7.30 percent in June.
The unemployment rate was at a pre-July low of 6.56 percent in January this year. In terms of states, At 26.9%, Haryana saw the highest UR in July, followed by Jammu & Kashmir at 20.2%, Rajasthan at 19.1% and Bihar at 18.8%. At the same time, Chhattisgarh saw the lowest UR at 0.8%, Odisha 0.9%, Meghalaya 1.5% and Madhya Pradesh 2%, NIE reported.
The decline in rural unemployment can be attributed to the steady monsoon, which has led to a rise in agricultural activity, say experts. Mahesh Bhatt, Chief Business Officer, TeamLease Services, says the major uptick in employment is attributed to public investment in PLI schemeslike in solar cell manufacturing and bulk drugs.
"Also, timely rainfall has led to a pick-up in agricultural activity. The government's Rs 2.65 lakh crore stimulus package is providing liquidity support to industries like tourism, aviation, construction, and Housing," he said. "Expected roll-out of new labour codes is also creating positive sentiments in the employment market," Bhatt added.