Source | economictimes.indiatimes.com | Yogima Seth Sharma
India’s labour force shrunk by 3.8 million during March 2022 to 428 million, the lowest in eight months since July 2021 with both employment and unemployment falling last month which is the biggest sign of economic distress, the Centre for Monitoring Indian Economy said.
According to CMIE, employment shrunk by 1.4 million to 396 million in March 2022 while the count of the unemployed fell by 2.4 million in March 2022. This resulted in a decline in the employment rate from 36.7% in February 2022 to 36.5% in March while the unemployment rate fell to 7.6% from 8.1% in February.
“The fall in the absolute count of unemployed or the unemployment rate is not because more people got employed. What the labour market statistics of March 2022 show is India’s biggest sign of economic distress,” it said.
“Millions left the labour markets and they even stopped looking for employment, possibly too disappointed with their failure to get a job and under the belief that there were no jobs available,” it added.