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The Current State of Unemployment in India: Insights from CMIE

*Unemployment continues to be a significant issue in India

*The unemployment rate in urban India stands at 8.4%

*The unemployment rate in rural areas is 6.8%

June 25, 2023


Unemployment continues to be a significant issue in India, and over the past few years, there have been some drastic changes in its status. In this post, we’ll be taking a look at the latest data from the Centre for Monitoring Indian Economy (CMIE) and the current situation of unemployment in India as of June 2023.

Recent Data

According to CMIE’s latest findings, the unemployment rate in India reached an all-time high of 9% in December 2021, before eventually settling down to 7.8% in June 2023. Despite this decrease, unemployment continues to be a major problem in the country, with millions of people struggling to find work. The report also highlights that the labor force participation rate in India is around 37.3%, which is lower than the pre-pandemic rate of 41.9%.

Regional Differences

Unemployment rates continue to be substantial in both rural and urban areas, but higher in urban areas. According to CMIE’s data, as of June 2023, the unemployment rate in urban India stands at 8.4%, whereas the rate in rural areas is 6.8%. The report further reveals that the state of Punjab has the highest urban unemployment rate in the country, followed by Tamil Nadu and Andhra Pradesh. On the other hand, the states of Meghalaya and Mizoram have the highest rural unemployment rates.


CMIE’s data serves as a reminder of the persistent challenge of unemployment in India. While there has been some improvement over time, the rate remains high and continues to be a serious concern for policymakers. In order to address this issue, there is a need for targeted policies aimed at boosting job creation, especially in urban areas. Additionally, schemes such as MGNREGA which provide employment in rural areas needs to continue through ongoing education and support.

I hope this post provides you with the necessary insights on the current status of unemployment in India.

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