Indian employment has declined sharply in the uninterrupted period, in June, when heavy rains delayed the deployment of agricultural workers in rural areas.
The employment rate dropped to 35.8% in June 2022 – the lowest level in two years – led by rural areas.
The level of the labor market worsened in rural and urban areas in June but the decline was most pronounced in rural areas. Employee participation rates have dropped in rural India from 41.3% in May to 39.9% in June. This fall of 1.4 percent is significantly higher than the 0.4 percent drop in LPR in Indian cities when it dropped from 37.1% to 36.7%.
In total, employment fell by 13 million to 390 million in June, compared to a profit of 8 million jobs in April and May, according to CMIE data. Although about 13 million lost their jobs during the month, the unemployment rate rose by just three million as some exited the labor market, writes Mahesh Vyas, managing director of CMIE, in an article published in Business Standard newspaper on Tuesday.