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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.
In comparison, the National Sample Survey Organisation's 68th Round on employment and unemployment was conducted on a sample of 101,724 households involving 326,810 individuals of 15 or greater than 15 years of age.

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


Unemployment falls further

On 23 January 2017, the 30-day moving average of all India unemployment rate stood at 5.75 per cent, witnessing a drop of 23 basis points over the four day period beginning on 19th January. The decline in the overall moving average has been led by a large reduction in rural unemployment, thereby overshadowing the neglible rise in urban unemployment over the period.

Rural unemployment, as observed through the 30-day moving average shed 40 basis points from 4.92 per cent to stand at 4.52 per cent for the four day period. This is the seventh consecutive day when 30-day moving average of rural unemployment has remained below 5 per cent. Urban unemployment showed some upward movement with the 30-day moving average rising marginally by 7 basis points to 8.03 per cent for the same period. Consequently, the urban-rural rate differential gained 47 basis points to end at 351 basis points. A higher gap reflects growing inequality across regional employment.

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