Unemployment: The number of unemployed decreased by 3.4 million in November

New Delhi| The unemployment rate in the country dropped to 8 percent in November, 2024 after reaching a high of 8.7 percent in October. During this period, there was a big decline of 3.4 million in the number of unemployed, while only half a million people got employment. According to the report of the Center for Monitoring Indian Economy (CMIE), despite the decline last month, the unemployment rate is still high. November marked the second consecutive month, when the unemployment rate has been 8 per cent or higher. It is expected to remain at a high level in December also.

The report said the labor market cooled down after the busy festive season ended. Some 2.9 million people left the labour market in November. There were 3.97 crore unemployed in the country in October, the number of which declined by about 34 lakh to 3.62 crore in November. A person is considered unemployed when he is unable to find employment but actively seeks work.

The report said that out of 3.4 million people, close to 3 million stopped seeking employment. However, these 3 million people could easily get back into the labor force in December in search of employment. Some 1 million of these people have fallen into the ranks of the unemployed. This means that they are ready to work, but are not actively seeking employment. Due to increase in labor force in December, there will be pressure on labor markets to provide additional employment. Despite increasing employment, the unemployment rate may remain above 8 per cent in December.
Decline in labor force participation

According to CMIE, the labor force participation rate (LPR) declined to 40.8 per cent from 41.2 per cent in October. A slight decrease in LPR in November is normal and this decline may be seasonal. LPR seasonal growth is expected in December.
The rate of employment decreased for the fourth month also

Last month, there was a slight decline in the rate of employment and it came down to 37.55 percent from 37.56 percent in October. This is the fourth consecutive month of decline in the rate of employment. In August, the rate had been 38 per cent. The unemployment rate was 8.1 per cent in the first eight months of the current financial year and 8.1 per cent in 2023-24. The rate of employment in the last financial year was 37.1 percent.