The unemployment rate decreases in India

The unemployment rate fell down to 6.67 per cent from 7.91 per cent in January. The rate is lowest since March 2021. The unemployment rate in the Urban Area is 8.16 pet cent as compared to 9.30 per cent in December. The rural areas unemployment rate in December was 7.28 per cent which has now fallen down to 5.84 per cent, according to CMIE data.

States having lowest unemployment rates are Telangana, Gujarat, Meghalaya and Odisha. The unemployment rate in Telangana unemployment rates fell to 0.7 percent from 2.16 per cent in January. The unemployment rate in Gujarat from 1.63 in December came down to 1.2 percent in January, followed by Meghalaya (1.5 per cent) and Odisha (1.8 per cent).

However, the unemployment rate in Haryana and Rajasthan rose to 23.4 per cent and 18.9 per cent respectively.The reason behind the falling unemployment rate according to CMIE is, decline in Omicron cases and the ease of restrictions.In the beginning of 2021 the unemployment rate stood to 6.52 per cent.

Urban unemployment was 8.09 percent and rural 5.81 per cent but increased till the end of the year. The 2020 pandemic impacted on the livelihood of people. And in December 2021 because of rising cases of Omicron. But has the cases of omicron fall, the unemployment rates decline.

Lower unemployment means that there is more job available for the job seekers as there are fewer workers to fill job openings. It also lowers the poverty rate as more people are employed.

When the unemployment rate is low the Government receives more money in the form of tax. Businesses also benefit from lower unemployment rate as they are more likely to expand their business. Hence the overall growth of the nation increases.

Updated by Shraddha Nagwekar