The unemployment rate in the country increased to 8.30% in December 2022. This is the highest in 16 months. Earlier in August 2021, the unemployment rate was 8.32%. It was 7.91% in December 2021 and 8% in November 22. The increase in the unemployment rate is mainly due to increase in unemployment in urban areas.
In December, the unemployment rate in urban areas reached 10.09%. It was 8.96% in November. At the same time, the unemployment rate of rural areas is modestly low. It was 7.44% in December, which was 7.55% in November. Mahesh Vyas, MD, Center for Monitoring Indian Economy (CMIE), said that the increase in the unemployment rate is not as bad as it may seem. An increase in the rate of labor participation has been observed in the past few months. It increased to 40.48% in December, the highest in 12 months.
The Question is how can we deal with this problem? What is the solution to decreasing this unemployment rate?