WHY IN NEWS?
- Centre for Monitoring Indian Economy (CMIE) report on unemployment in India has been released. As per the report Unemployment Rate in India is increasing.
Key Findings of the Report:
- Increase in Unemployment rate: The Unemployment rate in India has increased to 8% in April 2021 from 6.5% in March 2021.
- Unemployment Rate (UER)is the percentage of the labor force who are willing to work and are actively looking for a job but are unemployed.
- The labour participation rate(LPR) was 40% in April 2021. It is the worst since the national lockdown was imposed in May 2020.
- LPRis the ratio of the working age population greater than 15 years of age to labor force either working or looking for work. In other words, it measures the number of persons engaging in the labour force as a percentage of the working-age population.
- Salaried Class: The size of the salaried class has also decreased in India. During 2019-20, there were 85.9 million salaried jobs. As of April 2021, there were just 73.3 million. This may impact the domestic consumption of the country.
- Lack of Demand:Lack of demand is hampering further growth due to the impact on income and consumer sentiment. Income is lower than it was a year earlier. 90% of families have seen income shrinkage.
- Migration of workers: Migration from urban areas to rural areas due to loss of jobs in cities has also increased the burden on the agriculture sector and rural India.
- CMIE is a privately owned and professionally managed company headquartered in Mumbai. It was established in 1976 primarily as an independent think tank.
- Purpose: It produces economic and business databases and develops specialized analytical tools to deliver these to its customers for decision-making and for research