India's unemployment rate rises to 8-month high of 9.2% in June: CMIE report

Digital Desk: The unemployment rate in India in June 2024 surged to its highest level in eight months, reaching 9.2%, according to the Centre for Monitoring Indian Economy (CMIE). This represents a significant increase from 7% in May 2024 and a year-over-year rise from 8.5% in June 2023, as reported by Business Standard. The CMIE, through its Consumer Pyramids Household Survey, provides these periodic updates on employment metrics.

The unemployment rate is a critical metric that quantifies the proportion of individuals actively seeking employment within the labor force. June 2024's spike is indicative of underlying challenges within the job market.

Notably, the female unemployment rate in June 2024 soared to 18.5%, significantly higher than the national average and an increase from 15.1% in June 2023. The male unemployment rate, meanwhile, saw a modest rise to 7.8% from 7.7% in the same period last year.

This rise in unemployment comes despite an increase in the Labor Participation Rate (LPR), which measures the proportion of the working-age population (15 years and above) that is either employed or actively seeking employment. The LPR improved slightly to 41.4% in June 2024, up from 40.8% in May 2024 and 39.9% in June 2023. For men, the LPR was 68.1%, while for women it stood at a much lower 11.3%.

Across the United States, the number of Americans filing for unemployment benefits saw a slight uptick last week, staying close to a one-year peak. This increase has been primarily driven by substantial rises in claims from states like New York, New Jersey, and California. Since the end of the school year, there has been a noticeable surge in new jobless claims, raising questions about whether this trend is a temporary seasonal spike or a sign of increasing layoffs.

Government data released on Wednesday indicated that new claims rose by 4,000 to a total of 234,000 for the week ending June 29, from the previous week's figure. Economists surveyed by the Wall Street Journal had anticipated new claims to be around 233,000, based on seasonally adjusted numbers.

As these trends unfold, they highlight the complex dynamics of the labor market and the ongoing challenges faced by job seekers, particularly women. The data underscores the need for targeted policy interventions to address these disparities and support the growing number of unemployed individuals.