Centre for Monitoring Indian Economy (CMIE) showed that the Covid-19 crisis has lead to an increase in the nation’s unemployment rate to 27.11 percent for the week ended May 3. Millions of Indians lost their jobs due to the crisis which was threatening and became a matter of concern as coronavirus cases in India seem to take the worst turn. But even with rising cases, fresh data with increased job opportunities gave a new ray of hope to job seekers.
The current report by CMIE showed that there has been refinement in labour conditions in July and a further decline in the unemployment rate. Urban employment opportunities have increased. The gain in the number of job opportunities is not even close to that of previous months. The improvement in the number of job opportunities brought relief to millions of people who lost their jobs.
Earlier Mumbai based think tanks predicted a sharp decline in employment rate in July. “But, the net results seem to be headed towards consolidating and making further gains in July albeit lesser than in June,” said the report by Mahesh Vyas, the CEO of CMIE.
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Not only has there been a rise in labour participation, but the employment rate also rose to 38.4 percent in the week ended July 19.
A large number of rural participation resulted in increased employment rates. But now glad tidings came for urban job seekers as it seems that the trend is changing with increased employment opportunities for urban job seekers. The average employment rate in the first three weeks of July was 37.5 percent it might be lower than the pre-lockdown period but has increased as compared to the last few months.
The employment rate has reached 35.1 percent by July end, which is highest after a great fall in April. It now seems that more jobs have been added in the urban nation since the past few weeks as according to CMIE the rate had peaked to 34.5 percent in the week ended June 28 but fell to 33.2 percent in the first week of July. The rise by July end has proved to be a great relief to millions of people who were searching for jobs in urban areas.
CMIE’s Vyas highlighted that the urban employment recovery rate is astonishing because many reports show that towns that were unlocked he again been locked down strictly due to the rising cases. Service sector jobs have been shifted towards job portals like LinkedIn, Internshala, and others. If the same trend continues most of the experts expect a V-shaped recovery in employment.