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According to the Centre for Monitoring Indian Economy (CMIE), overall unemployment in India reached a four-month high of 8.11% in April. This month's increase in unemployment is ascribed to an increase in the number of new workers entering the labour force. In April, the country's labour force participation increased by 25.5 million to 467.6 million, bringing the overall participation rate to 41.98%.
In March, the overall unemployment rate in India was 7.8%. This rate has been gradually rising since February. Prior to April, the rate of joblessness peaked at 8.3% in December of the previous year.
The urban unemployment rate increased to 9.81% in April, up from 8.51% in March, according to the figures. The rural unemployment rate, on the other hand, fell modestly to 7.34% in April, down from 7.47% in March.
EPFO Payroll Data
Recent payroll data from the EPFO has also indicated that first-time entrants to the scheme have been on a downward trajectory amidst continued layoffs in the tech sector and a cautious outlook by most firms on hiring. The report shows that a total of 12.99 lakh people were enrolled in the scheme in January 2023 with 8.19 lakh new entrants. In February this year, a total of 13.96 lakh people were enrolled with the number of first-time subscribers dropping to 7.38 lakh.
Government’s Response
According to the yearly Periodic Labour Force Survey reports, Minister of State for Labour and Employment Rameswar Teli stated in a written response to a question in the Lok Sabha in March that the unemployment rate among graduate degree holders is dropping.
The minister also stated that infrastructure and productive capacity investments have a huge multiplier effect on growth and jobs. The budget for 2023-24 suggested increasing capital investment spending by 33% to Rs 10 lakh crore, or 3.3% of GDP, for the third year in a row. This significant increase in recent years has been critical to the government's attempts to boost economic potential and job creation.