India’s unemployment rate drops to 6.5% in January; employment rate surges to 37.9%: CMIE

The unemployment rate declined to 6.5 per cent in January 2021 from 9.1 per cent in December 2020, while the employment rate surged to 37.9 per cent as compared to 36.9 per cent, says CMIE The year 2021 started on positive note for India as it recorded a significant fall in the unemployment rate and an equally impressive increase in employment rate in January, according to private think tank CMIE. Employment in India, however, remained lower than it was before the pre-COVID levels, but there were lesser unemployed people willing to work as well, it said. As per Centre for Monitoring Indian Economy (CMIE) data, the unemployment rate declined to 6.5 per cent in January 2021 from 9.1 per cent in December 2020, while the employment rate surged to 37.9 per cent as compared to 36.9 per cent.  Nearly 12 million additional people were employed during January at 400.7 million as compared to 388.8 million in December 2020, which was the highest since lockdown began in March 2020. The surge in employment in January also compensated for the loss in the past three months.” This is big because month-over-month variations in employment rarely crossed the 5 million mark before the lockdown. The increase in January was twice this max variation. Also, after the initial months of sharp fall and rise in employment during the lockdown, the recovery process had slowed down and then stalled even before the recovery was complete. Employment declined in each of the three months October through December 2020. The recovery in January 2021 is therefore a welcome relief,” said Mahesh Vyas, CEO, CMIE.

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