In the two weeks following the lockdown that began on March 24, the estimated share of the unemployed in India has reached a peak. While urban workers are the most hit, rural workers too recorded significant job losses. The labour participation rate (employed plus those searching for jobs) also significantly decreased. Fewer people are actively searching for jobs than before, and of them, more now are unemployed.
Joblessness
The overall unemployment rate (represented by the blue line, left axis) in India, as measured by The Centre for Monitoring Indian Economy (CMIE*), showed a sharp increase in the two weeks following the lockdown (measured on Mar. 29 and Apr. 5). Notably, the overall labour participation rate (represented by the yellow line, right axis) recorded a drastic decrease to 36.1% on April 5 from about 42% two weeks back.
What were the unemployment rates and the labour participation rates post lockdown?
Unemployment due to lockdown DP - Chart 1_final
(If graphs don't appear in full, click here)
Urban workers most hit
The migrant exodus that followed the lockdown resulted in the urban unemployment rate (represented by the blue line in the following chart ) crossing the 30% mark by April 5. While the effect was relatively lower in rural areas, the unemployment rate (represented by the red line) crossed the 20% mark. Since 2016, the rural rate crossed the 12% mark only once (Jan. 31, 2016).
How were the urban and rural unemployment rates hit?
Unemployment due to lockdown DP - Chart 2_new
Also read: Coronavirus | Centre considers extending lockdown
Most States hit
The graph plots the overall unemployment rate as of March 2020 (vertical axis) against the change since March 2019 figures (horizontal axis) across 28 States/U.T.s for which the numbers were available.
Which States were the most affected?
Unemployment due to lockdown DP - Chart 3
The State-wise numbers are for the entire month of March 2020. As the lockdown was announced on March 24, they do not capture the picture fully unlike weekly or daily charts.
*These data were sourced from the Consumer Pyramids Household Survey conducted by CMIE. The survey was conducted using telephonic interviews (albeit with a reduced sample size).
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