Unemployment rate declines to 7.7%
According to The Economic Times, the unemployment rate in India experienced a decline, reaching 7.7% in May. This information is based on data provided by the Centre for Monitoring Indian Economy (CMIE), a private economic think tank. The report highlights a decrease in labor participation, which stood at 441.9 million.
The unemployment rate for individuals aged 15 years and above in India dropped to 7.7% in May 2023, down from 8.5% in the previous month. This decline can be attributed to a decrease in the number of individuals actively participating in the labor market, seeking employment opportunities.
Natasha Somayya K, representing CMIE, stated that the labor participation rate (LPR) saw a 1.1% decrease in May compared to April, resulting in a LPR of 39.6%. She explained that this drop was anticipated since April witnessed a significant influx of people entering the labor force, yet only a small portion managed to secure employment during that period. This discouragement led to a reduced number of individuals actively seeking work in May, causing the labor force to shrink from 453.5 million to 441.9 million, as per CMIE’s findings.