Unemployment increased rapidly in both the village and the city during the Corona period

Fear of third wave further increased fear

Due to Corona, unemployment in India has increased very rapidly in the last few days. Shocking figures have been released in the report of the Indian Economy Monitoring Center (CMIE).
According to its report released on Monday, while the unemployment rate in India was at 5.98 percent till July 18, it has reached 7.14 percent by July 25. It has been reported that unemployment has increased in both urban and rural areas. However, this rate of unemployment has come down somewhat in the month-wise figures. In June it was up to 10 percent, but after the second wave of Corona, there has been some improvement on the economic front, which has reduced it. Experts claim that unemployment has increased due to the restrictions imposed to control Corona. At the same time, the fear of third wave is presenting a worrying picture for the future as well decrease in business activity.

The CMI monitors the labor market. According to this, the figure of urban unemployment rate has reached 8.01 last week. Last week it was at 7.94 per cent. At the same time, the unemployment rate in rural areas has reached 6.75, which was much lower at 5.1 last week. At the same time, the data related to the spread of business has also been released on Monday itself. The figures released by Nomura India Business Resumption Induction (NIBRI) have fallen to 95.3, from 96.4 last week. The fall in these figures reflects a reduction in trading activity. According to the organization that prepared these figures, these figures were correct even before the second wave of Corona. However, these had declined by 4.7 percent compared to before the pandemic.

Much depends on the speed of vaccination

On these figures released on Monday, economist Gautam Shahi associated with Crisil says that it shows the extent to which unemployment has increased. However, many economists agree that the unemployment rate will decrease in the coming weeks and the economy will improve. But he believes that it will all depend on the speed of vaccination. According to Sonal Verma of Nomura Securities, the pace of vaccination will increase in August. But the way the pace of vaccination has come down recently, the possibility of delay is increasing.