The second wave of Corona is proving to be more dangerous and due to this the unemployment rate has increased wildly. Due to the second wave, the unemployment rate rose to 11.9 percent in May 2021, compared to 7.97 percent in the previous month of April 2021. Prior to this, the unemployment rate was in double digits in June 2020 last year when this rate was at 10.18 percent. According to data from the Center for Monitoring Indian Economy (CMIE) last year, except in April, May and June 2020, the unemployment rate had never been in double digits in any month since January 2016.
In April last year, during the nationwide lockdown imposed due to the Corona epidemic, the unemployment rate was the highest when its rate was 23.52 percent. However, after this the rate started declining from the very next month and in May 2020, the unemployment rate of the country reached 21.73 percent. According to CMIE, the urban unemployment rate reached 14.73 percent in May 2021, which is the highest since 23.14 in May 2020. Apart from this, the unemployment rate in villages was also at 10.63 percent last month, which is the highest since 21.11 percent in May 2020 last year.
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Increased rate due to fear of getting infected and poor vaccination
According to sources, due to the fear of getting infected and poor vaccination, fear about work increased in the minds of many workers, which led to a fall in the Labor Force Participation Rate (LFPR). is the ratio of the people looking for work to the total population of that particular age-group. This rate usually covers people of 15 years and above. At the same time, the unemployment rate is the ratio between the unemployed actively looking for work and the total labor force.
There is a decline in employment since January 2021
CMIE MD and CEO Mahesh Vyas recently wrote that there was a continuous decline in employment in May 2021. The employment rate in April 2021 was 36.8 per cent, while the 30-day moving average employment rate fell to 35.8 per cent till May 23, ie a decline of 1 per cent, which means there was a reduction of 10 million in employment. In comparison, 73.5 lakh in April Jobs were reduced. According to Vyas, employment has been declining since January 2021 this year. A similar decline can be seen in May 2021 as well.
(Article: Surya Sarathi Ray)
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