Data from the Centre for Monitoring Indian Economy (CMIE) showed on Wednesday that India’s unemployment rate dropped 7.14% in January from 8.30% the previous month, the lowest level in four months.
According to the report, the unemployment rate in urban areas dropped from 10.09% to 8.55% in January, while the rate in rural areas dropped from 7.44% to 6.48%.
Jammu and Kashmir had the highest unemployment rate among the states at 21.8%, followed closely by Haryana (21.7%) and Rajasthan (21.1%).
According to the report, the unemployment rate in January in Delhi was 16.7%, Goa was 16.2%, Assam was 16.1%, and Tripura was 16.0%.
It further revealed that unemployment was the lowest in states like Chhattisgarh at 0.5 per cent, followed by Odisha at 1.5 per cent, Tamil Nadu at 1.8 per cent and Madhya Pradesh at 1.9 per cent.
“It is safe to say that employment has improved over the last few quarters, however, we still have a long way to go given each year, in absolute terms, we have added nearly 20 million to the workforce, making the gap wider day by day,” TeamLease Services co-founder and executive vice president Rituparna Chakraborty said.
Aditya Narayan Mishra, managing director and CEO of CIEL HR Services, stated that January 2023 had the lowest unemployment rate over the previous three months, making it a good start to the year.
He said that various economic and geopolitical factors have been causing the unemployment rate to fluctuate over the past few months.
“IT, technology and startups have suffered in the last six months, however, we anticipate more jobs to be created over the months of 2023, which will reduce the rate further. Budget 2023 has also focused on job creation in agritech, education, tourism, infrastructure, healthcare, financial services, healthcare and MSME sectors, indicating that the unemployment rate may continue to fall in the following months,” he said.
Mishra added that initiatives to improve people’s skills would enable them to meet various sectors’ hiring requirements.