Decline in employment rates in the country: pressure on the labor market

Mumbai, Ta. Thursday, October 22, 2020

The labor market in India has been under constant pressure due to declining employment rates in rural India and persistently low employment rates in urban areas. In view of this fact, there is an urgent need to take steps to create more employment in the country, said the Center for Monitoring Indian Economy (CMIE).

The recovery in the labor market in India has been weakened due to declining employment rates in rural India and continued low employment in urban areas, according to its weekly review by CMIE.

Due to the large share of rural area in India's overall weightage, it is imperative that the employment rate in rural areas stop declining further. However, the CMIE also noted that it is challenging to prevent the employment rate from declining.

Additional employment needs to be raised to keep the employment rate stable. Employment rates need to remain at current levels, but the employment situation in September and October of the current financial year appears to be weaker compared to the same months last year.

According to the data, in the first three weeks of October, the employment rate in the country was 7.50 per cent, 7.50 per cent and 7.50 per cent. The rate was 6 per cent in September.

In rural areas, the average rate for the first three weeks was 8.10 per cent, down from 8.30 per cent in September. In urban areas, it was 4.50 per cent. That was better than 6.50 per cent in September.