August jobless rate leaps to 1-year high
India’s unemployment rate surged to a one-year high of 8.3 per cent in August as employment sequentially fell by 2 million to 394.6 million, according to data from the Centre for Monitoring Indian Economy (CMIE).
During July, the unemployment rate was at 6.8 per cent and employment was 397 million, the CMIE data added.
“The urban unemployment rate is usually higher at about 8 per cent than the rural unemployment rate, which is usually around 7 per cent. In August the urban unemployment rate shot up to 9.6 per cent and the rural unemployment rate also increased to 7.7 per cent,” CMIE managing director Mahesh Vyas told PTI.
Vyas further stated that erratic rainfall affected sowing activities and this is one of the reasons for the increase in unemployment in rural India.
India’s manufacturing sector activity in August witnessed the second-strongest improvement in operating conditions in nine months, boosted by strengthening demand conditions and softening inflation concerns, a monthly survey said on Thursday.
Production volumes were supported by a pick-up in exports and upbeat projections for the year-ahead outlook.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was little changed from July’s reading of 56.4, posting 56.2 in August.
The August data pointed to an improvement in overall operating conditions for the 14th straight month.