Covid leaves a lasting impact

India's problem is less with the unemployment rate and much more with the labour participation rate and the employment rate. The lasting impact of Covid is a much smaller worker participation rate

The second wave of the Covid-19 virus has ebbed and restrictions on mobility have reduced. Correspondingly, labour markets have started improving slowly. As of the week ended June 27, the unemployment rate was 8.7 per cent. In the past three weeks, the unemployment rate has ranged from 8.7 per cent to 9.4 per cent. The average unemployment rate of 8.9 per cent is much lower than the 11.9 per cent unemployment rate seen in May 2021. The unemployment rate had shot up to 14.5 per cent in the week ended May 16 and then it peaked at 14.7 per cent