The Unemployment rate of India attained a value of 4.70 % in 2024
The indicator recorded a historical change (bps difference) of 170 bps between 2021 to 2024, and is expected to decline by...
GlobalData projects the figure to change by 19 bps between 2025 and 2029, reaching...
Unemployment
Unemployed people are those that are actively looking for work but are having no luck. The unemployment rate is derived by dividing the total number of unemployed people by the total population of a certain region or workforce. It is one of the most important measures of a country's economic health.
Global Unemployment
The International Labour Organization estimates that by the end of 2021, the average regional unemployment rate will be 9.6%, down from the 10.6% it reached in 2020 but up from the 8% that was noted in 2019, which is used in this case as a benchmark to determine the impact of the pandemic's first two years.
The Organization for Economic Cooperation and Development (OECD) reported that the unemployment rate in OECD regions fell below the pre-pandemic rate when its February 2022 unemployment numbers were published in April 2022. Since this data series' inception in 2001, this is its lowest point. Additionally, the OECD region's unemployment rate decreased further, dropping by 0.7 million to 34.9 million people.
Unemployment Rate of India
The unemployment rate in India in 2021 stood at 7.8%. Between 2018-2021, the unemployment rate in India was highest in 2020 at 10.3% and lowest in 2019 at 5.2%. The unemployment rate decreased by 24.8% on a year-on-year basis in 2021 and increased by 46.5% between 2018-2021.
In 2020, the unemployment rate stood at 10.4%, as the country tackled a slowdown in economic activity amid the COVID-19 crisis. Unemployment decreased to 7.8% in 2021 as economic activities resumed with the lifting of restrictions. GlobalData forecasts the unemployment rate at 7% in 2022.
According to the Center for Monitoring Indian Economy (CMIE), the unemployment rate in India increased to 7.8% in June 2022 from 7.1% in April 2022. However, the rate of urban areas decreased from 8.2% in May 2022 to 7.3% in June 2022, and in rural India stood at 8% in June 2022. According to GlobalData forecast, the unemployment rate is forecast to decline to 7% in 2022 and further to 6.3% in 2023.
Factors that Cause Unemployment
Some of the key factors that affect unemployment in a nation are recession, government policies, geographic labor mobility, technological breakthroughs, the global economy, growing populations, and worker education, training, and skill development.
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