Unemployment rate rises to 14.5% in week ending May 16: CMIE
In past year, unemployment was highest in May at 21.73 per cent, when country was facing wrath of first coronavirus wave. In second Covid-19 wave, April turned out to be worse than expected when it came to jobs as states resorted to strict lockdowns
BusinessToday.In | May 18, 2021 | Updated 12:35 IST
Unemployment rate shot up from 6.5 per cent in March to 7.97 per cent in April
Weekly unemployment rate has seen a sudden rise to 14.45 per cent in the week ending May 16, data released by the private think tank Centre for Monitoring Indian Economy (CMIE) shows. This is almost double of 8.67 per cent unemployment rate on May 9. The current weekly unemployment rate stands at a 49-week high.
Covid-19: Job losses likely to rise in May as 2nd wave batters economy
Covid-19: Job losses likely to rise in May as 2nd wave batters economy The second wave of Covid-19 seems to have done more damage than predicted earlier expected. Smaller businesses including micro, small and medium enterprises are laying off more employees as demand and sales have plummeted due to localised lockdowns.
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UPDATED: May 17, 2021 12:39 IST
Unemployment is likely to rise in May as strict lockdowns have been imposed in most parts of the country. (Photo: PTI/Representational image)
Job losses are likely to witness a jump in May after rising sharply in April due to strict lockdowns imposed in most parts of the country to prevent the spread of Covid-19 cases during the second wave.
RBI warns of demand shock as 2nd Covid wave overwhelms India
RBI warns of demand shock as 2nd Covid wave overwhelms India
The Reserve Bank of India said in its latest bulletin that the biggest economic impact during the second wave has been on the demand outlook. The central bank said demand has seen a sharp fall during the April-May period, but added that the situation is better than the first wave in 2020.
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UPDATED: May 17, 2021 19:33 IST
The Reserve Bank of India has said that demand has been hit during the second Covid-19 wave in the country. (Photo: Reuters)
The Reserve Bank of India on Monday said in its May bulletin that the ferocity of the second wave has overwhelmed India, adding that real economic indicators have moderated through April-May 2021.
Job loss bodes ill for economy, spurring demand is key, says Mahesh Vyas
Updated:
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April’s labour participation rate was lower than in March 2020, says CMIE’s Vyas.
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April’s labour participation rate was lower than in March 2020, says CMIE’s Vyas. Rising unemployment including among the salaried class and shrinking real incomes have led to a lack of demand that bodes ill for the economy, said Mahesh Vyas, managing director at the Centre for Monitoring Indian Economy (CMIE).
“Unemployment rising is not a good sign at all for the economy,” he said. “Labour participation rate recovered soon after the lockdown was eased last year, but has run out of momentum even before it could recover fully,” Mr. Vyas added.
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At the beginning of 2021, when S&P Global Ratings forecast Indian gross domestic product growth at 11% for the coming financial year, the number looked eminently achievable. Last month, the Goods and Services Tax a good barometer of economy activity hit 1.41 trillion rupees ($19.1 billion), its highest ever monthly collection. Indeed, it’s been higher than the benchmark Rs. 1 trillion for seven consecutive months and higher than the same month for the last year for eight consecutive months.
India’s international merchandise trade reached $34 billion in March, the highest ever, and stayed over $30 billion in April. Many short term economic indicators auto sales, electricity consumption, highway toll collection were also pointing to a strong recovery after a crushing 2020.