Covid-19: India may see 10% unemployment rate in May as local lockdowns hit jobs

The unemployment rate in India is likely to cross 10 per cent in May due to stricter restrictions across states amid the ongoing second Covid-19 wave. Employment in urban areas has taken a harder knock this month.

With the second wave of the Covid-19 pandemic far from over in India, states are likely to go slow on the process of unlocking key economic activity. The unemployment rate has surged sharply as a result. The unemployment rate in May is likely to rise further due to increased restrictions on mobility and economic activity. Mumbai-based think tank Centre for Monitoring Indian Economy (CMIE) recently said that the 30-day moving average employment rate fell by 100 basis points on the week ended May 23. It denotes a loss of 10 million or one crore jobs. Mahesh Vyas, CMIE CEO, said the unemployment rate has gone up to double-digits when India was hit by a stringent nationwide lockdown during April and May 2020. He, however, feels that even the local restrictions across states are taking a toll on the economy during the second wave.