Labour conditions worsening. Expect job losses in August

In August, barring an exceptional spike in one week, the labour participation rate has been slipping

Weekly data for August indicate a substantial worsening of labour conditions during the month. All the three fast frequency measures — labour participation rate, unemployment rate and employment rate — have deteriorated.

While each of the last three months saw an increase in employment after the precipitous fall of April 2020, August could see a fall in employment.

Labour participation rate (LPR) fell to 39.5 per cent during the week ended August 30. This is the lowest LPR since mid-June. Before the lockdown that began in April, the LPR was in the 42-43 per cent range. The average LPR during 2019-20 was