A year ahead of general elections, India’s rural unemployment rate soars above 8%

Historically, joblessness soars in India’s rural areas in the month of June as harvesting ends in May and sowing for new crops gains momentum in July.

• Shubham
• 03 July, 2023

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By: Shubham Ghosh

INDIA’S unemployment rate exceeded eight per cent for the third time in 2023 due to seasonal joblessness in rural areas, data from a private research firm have shown, according to Bloomberg.

According to the Centre for Monitoring Indian Economy, the unemployment rate went up to 8.45 per cent in June from 7.68 per cent in May. However, while unemployment rate in the urban areas eased to 7.87 per cent in June, it saw a two-year high of 8.73 per cent.

Historically, joblessness soars in India’s rural areas in the month of June as harvesting ends in May and sowing for new crops gains momentum in July as the monsoon progresses. An effect on agriculture, a key source of livelihood for India’s village population, results in higher rural unemployment.

Higher unemployment is a cause of concern for India’s Narendra Modi government, particularly when a series of state elections are coming up later this year and the general polls next year. The prime minister has been found to be distributing job appointment letters to back his promise to generate a million government jobs by the end of the current year.