How to get true picture of unemployment in India?
As per the latest data published by Centre for Monitoring Indian Economy (CMIE), the unemployment rate in India was 11.9% (10.18%) in May 2021 (June 2020). The urban unemployment was much higher at 14.73% (11.68%), while the rural unemployment stood at 10.63% (9.49%). As per CMIE data, India’s unemployment rate was 6.5% in March 2021, just before the second wave of Covid19 pandemic hit India. It is therefore possible that the rate of unemployment normalize back to 6-7% range when the economy opens up in next 2-3months, as the intensity of pandemic has already subsided materially. The more worrisome trends highlighted by CMOE data however are- (a) The labour participation rate is beginning to fall sharply after 55yrs o age. It is below 25% for the 60-64 age group – (b) Unemployment rate is 35% in 20-24 age group. For youth in 20-29yr age group it is above 10%. (c) The employment rate is 19.3% for the persons who have college degree....