Unemployment rate rises as Covid-19 returns to haunt Indian economy

Job losses have started hitting the gig economy with a sharp rise in Covid-19 cases during the second wave. A private research report suggests that the unemployment rate has started rising since April.

Fresh restrictions imposed in different parts of the country due to the second Covid-19 wave could lead to job losses, similar to what was witnessed in 2020. Data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, suggested that unemployment has again started rising in the country. The unemployment rate touched 8.6 per cent for the week ending April 11, from just 6.7 per cent two weeks ago, according to fresh data released by CMIE. With migrant labourers retreating to their native places, the impact seems to be more severe in urban areas where the unemployment rate is now reaching 10 per cent.