jobs data: Employment generation rebounds sharply with 12 million new addition in January


Emloyment generation in India rebounded sharply in January with nearly 12 million people getting employed last month thus significantly reducing the country’s unemployment rate from 9.1% in December to 6.5% in January, said the Centre for Monitoring Indian Economy.

According to CMIE weekly data on the labour market, this is the biggest addition to the workforce in a single month, more than double the average addition of five lakh in a month before the lockdown.

This has increased the number of employed people from 388.8 million in December to 400.7 million in January, highest since the lockdown began in March 2020, resulting in an increase in employment rate to 37.9% from 36.9% in December.

“Employment in India is still lower than it was before the lockdown, but there are lesser unemployed people willing to work as well. The recovery is still incomplete but we made good progress in January 2021,” CMIE said in its report.

As per the report, the increase in employment in January has reduced the number of unemployed to 27.9 million compared to an average of 33 million. “This is an exceptionally low number of unemployed persons who were willing to work and were looking for work when compared to 2019-20,” it said.

Even the total unemployed people who were willing to work but did not have any employment in January 2021 was lowest in over two years to 40 million, it said.

According to CMIE, the unemployment rate has been volatile in the past six months ranging from a low of 6.5% in November 2020 to a high of 9.1% in December 2020 with the average unemployment rate during this six-month period at about 7.4%.

“The high monthly volatility of unemployment in normal times reflects the high proportion of informal employment in India,” it said. “Most employed persons in India do not have regular jobs. Their employment on any given day depends upon the state of the economy, upon the local environment, business conditions at large and a fair degree of luck,” it added.


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