Unemployment Rate In India

Overview

BSE and CMIE have collaborated to fill an important gap in India's statistical database by measuring unemployment through an extensive and representative household survey.
  • India's unemployment rate is an important indicator for measuring the health of its economy.
  • Unemployment rate is also useful in anticipating emerging trends and therefore taking appropriate measures to manage and sustain growth.
  • This survey is a potentially important input in determining the monetary policy of RBI, which currently relies largely on the index of Industrial Production (IIP) to gauge supply trends. It should be noted that the IIP covers only organised industries and not the service sector.
  • This joint effort has produced a 30-day moving average measure of the unemployment rate in India, every day and a monthly unemployment rate. This is the first instance of non-governmental organisations producing an unemployment measure for any country in the world. This is also the first instance of fast-frequency unemployment data being generated.
  • The unemployment rate in India is estimated from data collected regarding the employment / unemployment status of all members of 15 years and more of a sample of randomly selected households.

30 Days Moving Average
Weekly Graph
India - Label Urban - Label Rural - Label
Monthly Graph
India - Label Urban - Label Rural - Label


Unemployment continues to fall

On 26 February 2017, the 30-day moving average of all India unemployment rate stood at 5.17 per cent, witnessing a double digit decline of 30 basis points over the four day period beginning on 23rd February. The decrease in the overall moving average has been led by a double-digit decrease in both rural and urban unemployment with the latter witnessing a more than proportionate decline.
Rural unemployment, as observed through the 30-day moving average fell by 27 basis points from 4.72 per cent to stand at 4.45 per cent for the four day period. Similarly, the 30-day moving average of urban unemployment fell by 37 basis points to 6.60 per cent for the same period. Consequently, the urban-rural rate differential fell by 10 basis points to end at 215 basis points. A lower gap reflects reducing inequality across regional employment.