Due to “lockdown”, the rate of unemployment had increased significantly in the month of April and May. But when the government declared the “unlock” phase in the country, the rate started going down, almost reached below 10%. Whereas in April it was 23.52% and in May it was 23.48%. Analyzing the past few week’s data, the current unemployment rate has come down to 10.99% which is still threatening for our country. (Reference: Trading Economics) The problem is, as the industries of various sectors have not been able to resume their work as they were doing it earlier, it is directly affecting India’s economy. The rate of unemployment is not at all reducing anymore, from the past few weeks, it is standing still at the current rate.
Due to labor problems, transportation issues, and low demand, the situation is becoming terrible day by day. (Reference: The Times of India) There was a hope earlier that when the lockdown phase will get over, again the economy will go up. But, until the big manufacturing plans, and sectors like hotel and tourism, food chains, and others don’t start full-fledged, it will be really difficult to get back everything to the previous stage.
Just before the lockdown, the rate of unemployment in India was at 8.75% which was not at all satisfactory even at that time. And now, when the rate is much higher than that, Indian citizens are facing real trouble. According to the experts, the daily workers who lost their jobs in lockdown, have already got their jobs back. Even the self-employed people have started getting new projects to work on. But apart from that, due to lack of investment in every sector, new jobs or projects have not been created the way it was before. That is the reason, it will be really difficult to reduce the unemployment rate from the current state. If we look at the statistics, we can find out how different states of India (the ones that are mostly dependent upon heavy industrial plants) have been affected due to the lockdown.
Haryana (33.6%), Punjab (16.8%), Rajasthan (13.7%), Tamil Nadu (13.5%), Telangana (15.5%). Also, the states that are not dependent upon heavy industries, are doing fine such as Meghalaya (1.1%), Assam (0.06%), Sikkim (4.7%), West Bengal (6.5%).
Exceptions are there as well, in developed states like Gujarat the rate of unemployment is only 2.8%, whereas, states like Tripura where there are no big industries, have an unemployment rate of 21.3%.