Unemployment rate reduced to 6.52 percent in March, but Covid-19 infection may increase again

In the first phase of the Covid-19 pandemic, the badly affected employment sector seems to be slowly coming back on track. In March (2021), there is some relief on the employment front. The unemployment rate has come down a little this month. The unemployment rate in February was 6.90 percent but now it has come down to 6.52 percent. 

According to data from the Center for Monitoring Indian Economy (CMIE), the unemployment rate is 7.24 percent in urban areas and 6.19 percent in rural areas. However, how permanent this decline in the unemployment rate is not sure, it cannot be said right now because Maharashtra, Madhya Pradesh is seeing a second wave of infection and this has increased the possibility of a lockdown. This may shock economic activity and increase the unemployment rate.

More employment in the rural sector

However, according to new data from CMIE, more people got employment in rural areas. In February, the unemployment rate in urban areas was 6.99 percent, while in rural areas the unemployment rate in February was 6.86 percent. The unemployment rate has come down due to an increase in agricultural work in rural areas. However, it is feared that if the situation of Covid infection is serious in some states of the country especially Maharashtra and there is a need to impose lockdown in some areas, then the crisis on the unemployment front may increase once again. Due to Covid-19, the unemployment rate reached 23.52 percent in April 2020 and 21.73 percent in May 2020.

Highest unemployment in Haryana

According to the latest figures, Haryana has the highest unemployment at 28.1 per cent. Goa has 22.1 per cent, Rajasthan 19.7 per cent, 13.9 per cent in Tripura, 14.3 per cent in Himachal Pradesh, 14.5 per cent in Bihar, 12.8 per cent in Jharkhand and 9.4 per cent in Delhi. Madhya Pradesh has the lowest level of unemployment.