India's unemployment rate fell in September to its lowest level in a year: Potential reasons for this favorable decline
In September, India's jobless rate fell to a 12-month low of 7.09%. Urban unemployment dropped significantly from 10.09% in August to 8.94% in September.
The Centre for Monitoring Indian Economy's data shows that in September, the rural jobless rate likewise reached a 12-month low of 6.20%.
Also, the number of people requesting employment under the Mahatma Gandhi National Rural Employment Guarantee Scheme fell to its lowest level in September of the current fiscal year, according to the official dashboard. In addition, September's person days created (work performed) were the lowest so far in FY24.
Let’s understand the possible reasons and factors behind this favourable decline in unemployment rate
India's festive season boosted economic growth
According to the ICRA Business Activity Monitor, economic activity in India reached a six-month high in August 2023, with year-over-year (YoY) growth rising to 10.6% from 8.1% in July 2023. This spike is attributed to a number of variables by the index, which uses high-frequency indicators.
The economy continues to pick up, and the ongoing holiday season is predicted to give it a further boost.
According to Pravin Khandelwal, national secretary general of the Confederation of All India Traders, there will be a projected infusion of nearly Rs 3 lakh crore through the sale of commodities from Raksha Bandhan on August 30 to November. In preparation for Raksha Bandhan, Ganesh Chaturthi, Navratri, Dussehra, and Diwali, he said, the trading community is increasing up its efforts.
Decline in Rural unemployment
The decrease in rural unemployment is a result of September's abundant rainfall. 13% more rain fell on the nation than usual during the month. However, August saw 36% less rainfall than average.
Government initiatives assisted in reducing unemployment
On August 28, 2023, PM Modi delivered 51,000 appointment letters to newly hired employees through video conference video conference to newly hired employees.
According to the authorities, the Rozgar Mela will take place in 45 different cities across the nation. Rozgar Mela will take place in 45 different cities across the nation, according to the authorities.
On September 26, 2023, Prime Minister Narendra Modi delivered over 51,000 appointment letters to freshly hired candidates, strengthening his pledge to provide work opportunities.
The Rozgar Mela is a step in the direction of fulfilling the prime minister's promise to give employment creation first priority. According to the Prime Minister's Office, the Rozgar Mela is expected to act as a catalyst for increased job creation and give young people worthwhile possibilities for empowerment and involvement in national development.
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