Data from the Centre for Monitoring Indian Economy (CMIE) show that in August, with a two million decline in employment, India’s unemployment rate increased to a one-year high of 8.3%. On the other hand, since late last year, the number of open positions in the US has surprisingly surpassed 11 million.
Therefore, employment growth has exceeded all forecasts, and the unemployment rate has decreased by 3.5%. In India, there were 397 million people employed in July, with a 6.8% unemployment rate.
The unemployment rates in metropolitan areas are often greater than those in rural areas, hovering around 8% and 7%, respectively. However, in August, India’s urban unemployment rate increased to 9.6% while the country’s rural unemployment rate increased to 7.7%. In rural India, the employment rate dropped from 37.6 percent in July to 37.3 percent in August.
Unpredictable rains that have an impact on sowing are to blame for this decline. In the US, employers recruited more people than anticipated in July, resulting in a decrease in the unemployment rate to 3.5%. This has caused people to think that the recession has been averted. About 398,000 new jobs were generated in June. Given the tight labour market, the US private sector added about 132,000 jobs in August, indicating that there has been growth, albeit slowly.