News Brief
India’s Unemployment Rate Eases To 5.2 Per Cent In July As Rural Hiring Strengthens
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India’s unemployment rate slipped to 5.2 per cent in July, down from 5.6 per cent a month earlier, according to fresh data from the Ministry of Statistics released on Monday (18 August).
The fall was largely attributed to seasonal rural hiring in the run-up to the festive period and an uptick in agricultural activity.
The rural jobless rate among people aged 15 and above eased to 4.4 per cent in July compared with 4.9 per cent in June.
Urban areas, however, saw a modest increase, with unemployment inching up to 7.2 per cent from 7.1 per cent the previous month.
Youth unemployment presented a more mixed picture. In cities, the jobless rate for those aged 15 to 29 years edged higher to 19 per cent in July from 18.8 per cent in June, while in rural regions it fell to 13 per cent, down from 13.8 per cent.
Meanwhile, the labour force participation rate (LFPR), the share of working-age people employed, seeking work, or available for work, rose to 54.9 per cent in July, up from 54.2 per cent in June.
The labour market figures come at a time when the government has announced plans to reduce the goods and services tax (GST) by October in an effort to bolster manufacturing and employment.
The decision follows heightened tensions with Washington after President Donald Trump doubled tariffs on Indian goods to 50 per cent.
