- The unemployment rate is the percentage of the labour force that is unemployed and actively looking for work. It is calculated by dividing the number of unemployed people by the total number of people in the labour force.
- This means that out of every 100 people who were willing and able to work in February 2023, about 8 did not have a job and were looking for one.
- A high unemployment rate indicates that the economy is not creating enough jobs for its working-age population. It also affects the income, consumption and well-being of the people.
- India's unemployment rate rose to 8.2% in February 2023 from 6.5% in January 2023, according to data released by the Centre for Monitoring Indian Economy (CMIE).
- The rise in unemployment was mainly due to lower absorption of labour in the market, especially in urban areas.
- The urban unemployment rate fell to 7.2% in October-December 2022 from 8.7% in the same period a year ago, but rose again to 8.3% in December 2022.
- The rural unemployment rate also increased from 6.1% in November 2022 to 7.9% in December 2022.
- The CMIE attributed the increase in unemployment to various factors such as weak consumer demand, high inflation, low investment, policy uncertainty and the impact of COVID-19 pandemic.
Question:
Q.1 What was the unemployment rate in India in February 2023?a. 6.5%
b. 7.9%
c. 8.2%
d. 8.7%
