Double-digit unemployment rate makes a return

The unemployment rate has moved into double-digits. This is not normal for India. The only time the unemployment rate lurched into double-digits was when India was shutdown by a stringent nationwide lockdown during April and May 2020. There is no similarly draconian lockdown now although there are several local restrictions that restrain mobility in varying but distinctly milder degrees. The double-digit unemployment rate seen in recent times indicates that even these restrictions are taking a toll on the economy.

The unemployment rate touched 14.5 per cent in the week ended May 16, 2021. In the latest week, ended May 23