New Delhi: India’s headline unemployment rate fell sharply to 7.8 per cent in July 2024, down from 9.2 per cent recorded in June, according to fresh data released by the Centre for Monitoring Indian Economy (CMIE). The improvement was largely driven by a recovery in rural employment, which had been impacted by an uneven monsoon in the preceding months.
Rural unemployment dropped to 7.2 per cent from 8.6 per cent, while urban unemployment showed a more modest decline, falling to 9.1 per cent from 10.4 per cent in the previous month. The data, based on CMIE’s Consumer Pyramids Household Survey tracking over 1.75 lakh households across the country, showed improvement across most major states.
CMIE CEO Mahesh Vyas said the improvement was encouraging but cautioned that the numbers remained “structurally elevated” compared to pre-pandemic levels. “While July’s figures are a relief, we need to see sustained improvement in urban employment and the quality of jobs being created, especially in manufacturing,” he told a news conference.
The government welcomed the data, with the Ministry of Labour and Employment pointing to the success of the Production Linked Incentive (PLI) scheme, the Pradhan Mantri Mudra Yojana, and robust GST collections as indicators of a healthy labour market. Union Minister Mansukh Mandaviya said employment generation was a “top priority” for the third Modi government.
However, economists note that India’s employment challenge goes beyond headline unemployment figures. Labour force participation remains low, particularly among women, and a large segment of the workforce is engaged in low-productivity, informal employment. The ILO India Employment Report released earlier this year had flagged “jobless growth” as a structural concern.
Separately, the Employees’ Provident Fund Organisation (EPFO) reported net enrolment of 19.94 lakh new members in June, the highest monthly figure this fiscal year, suggesting growth in formal employment in the organised sector.
