Job loss bodes ill for economy, spurring demand is key, says Mahesh Vyas
The Hindu
April’s labour participation rate was lower than in March 2020, says CMIE’s Vyas.
Rising unemployment including among the salaried class and shrinking real incomes have led to a lack of demand that bodes ill for the economy, said Mahesh Vyas, managing director at the Centre for Monitoring Indian Economy (CMIE). “Unemployment rising is not a good sign at all for the economy,” he said. “Labour participation rate recovered soon after the lockdown was eased last year, but has run out of momentum even before it could recover fully,” Mr. Vyas added. Unemployment rose to 8% in April, from 6.5% in March, CMIE said. The labour participation rate (LPR) was 40% in April, according to the private economic forecaster. “The LPR is about two percentage points below what it was before April 2020. This is a very serious matter for a population of our size,” Mr. Vyas said.More Related News