India's April unemployment rate rises to 7.6%, highest since October 2016; factory activity expands at slowest pace: CMIE

Factory activity expanded at its slowest pace in eight months in April as growth in new orders and output dipped as the general election got under way, a separate private business survey found.

Reuters May 02, 2019 20:16:42 IST
India's April unemployment rate rises to 7.6%, highest since October 2016; factory activity expands at slowest pace: CMIE
  • The figures could be a setback for Prime Minister Narendra Modi during a staggered general election

  • Optimism among manufacturing firms also ebbed in April

  • The government recently withheld jobs data because officials said they needed to check its veracity

New Delhi: India’s unemployment rate in April accelerated to 7.6 percent, the highest since October 2016, and up from 6.71 percent in March 2019, according to data compiled by the Centre for Monitoring Indian Economy (CMIE) that was released late on Wednesday.

“The lower unemployment rate in March was a blip, and it has again climbed following the trend of earlier months,” Mahesh Vyas, head of the Mumbai-based think tank, told Reuters.

The figures could be a setback for Prime Minister Narendra Modi during a staggered general election that will end on 19 May, as concerns about weak farm prices and low jobs growth are often brought up as election issues by Opposition parties.

Indias April unemployment rate rises to 76 highest since October 2016 factory activity expands at slowest pace CMIE

Representational image. PTI

Factory activity expanded at its slowest pace in eight months in April as growth in new orders and output dipped as the general election got under way, a separate private business survey found.

Optimism among manufacturing firms also ebbed in April as they remain concerned about what policies a new government will adopt when it takes office by the end of May.

The government recently withheld jobs data because officials said they needed to check its veracity.

India usually only releases official unemployment data every five years.

But December unemployment figures were leaked to a newspaper and showed that the jobless rate rose to its highest level in at least 45 years in 2017/18. The government has said it will release jobs data once a year.

The CMIE said in a report released in January that nearly 11 million people lost their jobs in 2018 after the demonetisation of high-value banknotes in late 2016, and the chaotic launch of a new goods and services tax in 2017, hit millions of small businesses.

The government told Parliament this year that it did not have data on the impact of demonetisation on jobs in small businesses.

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