Source | economictimes.indiatimes.com | Yogima Seth Sharma
The labour market in India continues to be under stress primarily because of the fall in the employment rate in rural India and the continued low employment rate in urban India, the Centre for Monitoring Indian Economy said, suggesting urgent need to create more jobs.
“The falling employment rate in rural India and the continued low employment rate in urban India are the weaknesses in India’s labour market recovery process,” CMIE said in its weekly analysis.
“Given that rural India has a much larger weight in all-India estimates, it is imperative that its employment rate stops falling any further,” it added.
According to CMIE, keeping the employment rate from slipping is challenging. “To merely keep the employment rate unchanged, the economy has to generate additional jobs. It needs to run to stay where it is,” CMIE suggested.
CMIE data shows that the gap between the monthly employment rate in 2020-21 and the corresponding month of 2019-20 narrowed consistently till August 2020 when it was just 182 basis points after which it rose to 254 basis points in September and there are apprehensions it may widen further in October.