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  • The Impact Of Declining Demand On Employment, Unemployment Rate In 11 States Including Haryana, Rajasthan And Bengal Is Up To 3 Times Higher Than The National Rate.

New Delhi29 minutes agoAuthor: Skanda Vivek Dhar

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The second wave of Corona may not have imposed a national lockdown, but employment was badly affected, the unemployment rate in the country was 9.17% in June.

The second wave of Corona may not have imposed a national lockdown, but employment was badly affected. The unemployment rate in the country stood at 9.17% in June. Although Haryana, Rajasthan, P. In 11 states like Bengal and Bihar, this rate is up to three times the national average. In states where unemployment rate is low, the major reason is more work distributed under MGNREGA. According to the Center for Monitoring Indian Economy (CMIE), Haryana has the highest unemployment rate at 27.9%. The rate is 26.2% in Rajasthan, 22.1% in Bengal, 10.5% in Bihar and 12.8% in Jharkhand.

Unemployment rate refers to how many people want work and how many of them do not get work. This rate is lower than the national average in Gujarat (1.8%), MP (2.3%), Chhattisgarh (2.6%), Maharashtra (4.4%) and UP (4.3%). CMIE surveys 44,600 households in the country and gives unemployment rate data every month. Explaining the reason for the 15-fold difference in the unemployment rate of Gujarat and Haryana, almost equal in industrialization, Mahesh Vyas, CEO, CMIE says, Gujarat has a large number of MSMEs, which are less in Haryana.

workers decreased in 15 states

  • 38.32 crore people had employment in this June. This is 1.70 crore less than June 2019. The number of people employed in 15 of the 27 major states has decreased as compared to June 2019. The maximum decrease was in Puducherry (-54.41), Tamil Nadu (-30.73) and Kerala (-24.62).
  • The unemployment rate in UP is half of the national average. One reason for this is the low labor participation rate (number of people willing to work). The rate in UP is 34.70%, which is lower than the national average of 39.57%.
  • Gujarat distributed 87% of the work distributed under MGNREGA in 2019-20 in these three and a half months.

Employment decreased due to lack of demand for industries open
About 17 lakh jobs are in small industries in Rajasthan. In the second wave, when the demand decreased due to the closure of the market, the industries were closed. Jobs also gone. About 8 lakh people are in the automobile sector in Haryana. Industries are not running at full speed due to low demand. As a result, the unemployment rate has increased.

Continuous decrease in salaried jobs: According to the recently released data by the Ministry of Statistics and Program Implementation, there was a decline in organized employment in May. The CEO of CMIE says, since March 2020, there has been a continuous decrease in the salary jobs in the country. It improved slightly in June, but the situation is critical. Last year saw a “V” shape recovery in some sectors, but not in organized employment.

Inputs: Vinod Mittal from Rajasthan, Manoj Kumar from Haryana.

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