The average unemployment rate in the country has once again crossed 8 percent. This is the third time in the last 6 months this year when the average unemployment rate of the country has gone up by 8 percent. According to the report, due to seasonal unemployment in rural areas, India's unemployment rate rose above 8 percent for the third time this year. The special thing is that there has been a decline in the unemployment rate in urban areas. Let us also tell you why unemployment has increased in rural areas.
Unemployment reduced in urban areas
According to the report of the Center for Monitoring Indian Economy Pvt Ltd, the unemployment rate in June rose to 8.45 per cent from 7.68 per cent in the previous month. Last month, while unemployment in urban areas came down to 7.87%, rural India saw the highest unemployment in two years at 8.73%.
Why unemployment increases in June
June is generally a lean season for the agriculture sector, which is a major source of livelihood for the country's rural population. Unemployment in India's villages historically rises in June as harvesting ends in May and sowing of new crops gathers pace only in July when the monsoon advances.
Unemployment concern
Rising unemployment is a concern for Prime Minister Narendra Modi, who is trying to shore up his administration's credibility by distributing job offer letters as part of his promise to provide one million government jobs by the end of this year. Persistent weakness in the labor market, especially in rural areas where nearly two-thirds of India's population lives, may pose the biggest challenges in the 2024 elections.
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