CMIE: Unemployment rate climbs to 27.1%

On May 5, 2020, the Centre for Monitoring of Indian Economy released unemployment data. According to the data, 121.5 million are without works.

Highlights

The data says that 91,3 million daily wage labourers were out of their jobs due to COVID-19 crisis. Also, 18.2 million entrepreneurs are without work as there are lack of labourers. Around 17.8 million salaried workers are also affected due to COVID-19.

Key findings

The report generated by CMIE had the following findings

  • The ongoing lock down, considered the biggest in world history has generated jobless rate of 27.1%.
  • Both the urban and rural unemployment rates increased. The rural unemployment increased from 20.88% to 26.16%. In order to help the rural population, GoI is strengthening MNREGA. The wages of MNREGA has been increased under Pradhan Mantri Garib Kalyan Ann yojana. Also, several states like Jharkhand are launching schemes to further boost such measures.

Farming Sector

Among all the activities, farming was performing good as it was exempted from lock down. Around 5.8 million farmers returned to work after April 20, 2020. Also, the Food Corporation of India (FCI) and the National Agricultural Cooperative Marketing Federation of India (NAFED) were engaged in their fullest to procure the rabi crops. This included rice, wheat, pulses and cotton.

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