India's unemployment rate rose for the second consecutive month in March 2023 and is now at 7.8 percent, data from Centre for Monitoring Indian Economy (CMIE) shows. The unemployment rate in urban markets is higher at 8.51 percent compared with 7.47 percent in rural India.
An unemployment rate of over 7 per cent seems to be the new norm in India, which is rather high for a country that is among the fastest growing economies in the world. According to The Economist, only nine countries had an unemployment rate that was higher than that of India, which include Greece, Italy, Spain, Turkey, Brazil, Chile, Colombia, Egypt and Saudi Arabia. Over thirty countries did better than India on the unemployment rate front although many of them faced potential recession prospects.
Source: CMIE
Of all the states, Haryana and Rajasthan are the worst affected with unemployment rates as high as 26.8 percent and 26.4 percent, followed by Jammu and Kashmir (23.1 percent), Sikkim (20.7 percent) and Bihar (17.6 percent). The lowest unemployment rates were recorded in Chhattisgarh and Uttarakhand with 0.8 percent in both states in March 2023, CMIE data shows.
"India's labour markets deteriorated in March 2023. The unemployment rate increased from 7.5 per cent in February to 7.8 per cent in March. The effect of this is compounded by the simultaneous fall in the labour force participation rate, which fell from 39.9 per cent to 39.8 per cent," CMIE managing director Mahesh Vyas told PTI.
TeamLease in Employment Outlook report for April to June 2023 said the intent to hire in Q1 FY24 declines by 4 percent to 64 percent due to the impact of global recessionary trends and workforce rationalization. "Government interventions such as National Employment Policy and Skill India Mission have serve to counter the present recessionary fears to a good extent."
The report further lists the industries with high intent to hire such as telecommunications, financial services, healthcare, pharmaceuticals and fast moving consumer goods. Further, the intent to hire is greater in sales and marketing roles and the least in human resources.
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