Any Economy is marked by characteristic transition from rural to urban if it is on the upscale pathway of growth and development. Unemployment is clearly not a good feature in any developing or progressive economy. It shows the lack of resource management and unplanned administrative decisions or the lack of implementation of specific Government policies. The unemployment rate in India rose to 7.83 per cent in April 2022, higher than 7.60 per cent in March as shown in the monthly data published by the Center for Monitoring of Indian Economy (CMIE). 

Overall unemployment has hurt urban areas more than the rural areas last month. Urban unemployment rose to 9.22 per cent in April in comparison to 8.28 per cent in March while rural unemployment fell to 7.18 per cent in comparison to 7.29 per cent in March. In the month of April unemployment was highest in Haryana followed by Rajasthan and Bihar CMIE data showed. Unemployment rate in Haryana stood at 34.5 per cent while it was 28.8 percent and 21.1 per cent in Rajasthan and Bihar respectively.

While Himachal Pradesh, Chhattisgarh, and Assam saw the lowest unemployment rate which stood at a miniscule 0.2 per cent, 0.6 per cent and 1.2 percent respectively. This comes as the labour market is showing signs of economic distress CMIE said last month as India’s labour force fell by 38 lakhs in the month of March, lowest level in the last eight months. CMIE said millions left the labour markets they stopped even looking for employment, possibly too disappointed with their failure to get a job and under the belief that there were no jobs available. India faces the daunting challenge of creating jobs that are broad-based, i.e. jobs for youth. The job quality in the country suffered as a result of the pandemic. The government however refuted the claim and said it would be factually wrong to infer that half of the working age population has lost hope for work. The working age population had dropped out of the labor force as a large proportion was pursuing education or engaged in unpaid activities such as care giving. In March, CPI (consumer price index) inflation rose to a 17-month high of 6.95 per cent while the WPI (wholesale price index) inflation rose to a four-month high of 14.55 per cent. With high inflation biting pockets of millions in India, the Central Bank is now expected to hike interest rates in the June monetary policy meeting. Economists say job opportunities have been hit by sluggish domestic demand and the slow pace of economic recovery amid rising prices.

The underlying cause for the rising unemployment is the second wave of the pandemic to have hit the country consecutively. More than 1 crore Indians have become unemployed due to the rampant migration of the workforce from urban to rural areas. People left the urban areas and migrated to the rural areas in search of food security. Unemployment "rises like a rocket and falls like a feather."At the onset of a recession as companies cope with diminished demand, declining profits and elevated debt, many start to lay off workers in order to cut costs. As the number of unemployed workers rises while demand and output decline further as a result, newly unemployed workers find it harder to find new jobs and the average length of unemployment increases. Rising unemployment is first among a number of indicators that define a recession and it exacerbates the downturn.

The Rising Unemployment in India.