7.4 million Job Losses in April Due to Lockdowns: Restrictions imposed by states due to the second wave of Covid-19 and the inability of the economy to absorb labour force resulted in a loss of 7.35 million jobs in April, pushing up the country’s unemployment rate to 8% compared with 6.5% in March.
At the national level, unemployment rate rose to 8.67% in the week ended May 9 from 7.4% in the week ended April 25. Rural unemployment during the same period also rose from 6.37% to 7.29%. Like urban, the latest figures are also higher for both rural and national level unemployment rates published for the month of April 2021, by CMIE.
Economists say the unemployment rate may rise further in the coming weeks if the ongoing state-specific lockdowns continue. These lockdowns have affected employment in the unorganized sector. Baring some essential services, people engaged in other businesses are mostly unemployed due to the lockdown as demand for their services has come down.
Hindustan Times citing labour economist KR Shyam Sundar mentioned in a report that 2020 was worse because of the national lockdown and closure of all economic activities, but a 12% unemployment rate without a national lockdown is worrisome.
During the same period last year, the national unemployment rate was almost 24% in the week ended May 10, 2020, and the urban unemployment last year during the same period was 27.83%, as per CMIE data.
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