According to the recent survey by CMIE, the unemployment rate in India fell to its pre lockdown level of 8.5% in the week ended June 21 from the high rate of 23.5% in April and May. It is a little higher than the 13-week average pre lockdown rate of 6.8%.
Though the urban unemployment rate has fallen it is still distinctly higher than the pre lockdown levels 11.2 % in the week ended June 12. The average of 25.83%, urban unemployment spiked during the peak unemployment period of April and May. The high infection rate, losses of jobs are the main factors which hinder the unemployment in urban areas.
Whereas rural India has apparently gained a massive increase in employment as Kharif season is on, people are going back to earn due to unlocking, and demand for work also increased under the NREGA scheme.CMIE also said that rural areas may see bigger gains in the coming months.
As offices, shops, and self-employment avenues reopened, it is taking the overall unemployment scenario closer to pre lockdown. The impact of the unlocking process dropped the rural job loss rate. Also, the improvement is largely due to casual work and self-employment.
However, nationwide long lockdown badly brings job loss and wage loss which means many are not getting work. And if the job loss rate stays 10-12%, then it will overall impact on people. While the relaxation of lockdown helped in alleviating the unemployment stress, wage employment and jobs recovery is still a big concern as it will take much longer time.