NEW DELHI: India’s overall jobless rate climbed in October, led by a sharp rise in rural unemployment after the end of harvest of monsoon-sown crops, according to a private research firm.
The jobless rate rose to a two-month high of 7.77% last month, from a four-year low of 6.43% in September, data from the Centre for Monitoring Indian Economy Pvt showed. Rural unemployment rate climbed to 8.04% from 5.84% in September, while urban jobless rate was at 7.21% compared to 7.7% a month before.
In India, monsoon crops are generally harvested between September and the middle of October. Winter crops sowing starts by November, resulting in a temporary rise in rural unemployment rate in the interim period. Rural unemployment rate was high even in the comparable year-ago period at 7.91%, only to fall sharply the following month to 6.41%.
Meanwhile, a separate survey of purchasing managers at factories showed job creation climbed at the fastest pace in nearly three years. The S&P Global India Manufacturing PMI was at 55.3 in October from 55.1 in September, continuing to stay above the long run average of 53.7, S&P said.
“Manufacturing employment increased at a marked rate that was one of the strongest since data collection started in March 2005,” as capacity constrained factories were forced to meet demand for goods by hiring more, the agency said.
