Unemployment rate falls to 7.95% in July due to rise in agricultural labour demand

livemint.com:

unemployment rate fell last month mainly due to increased demand for agricultural labour in rural areas with the onset of the monsoon season. According to a report published by Bloomberg citing Centre for Monitoring Indian Economy(CMIE) data for the month of July, the total joblessness rate fell to 7.95% in July, from 8.45% in June The seasonal monsoon rains have covered the entire country and it is critical as the monsoon rains water nearly half of the country's agricultural land have raised the expectations of higher production in farm products and also helping in economic growth.

The seasonal monsoon rains have been 4% above normal so far this season. While the agriculture sector saw activity with improved rains, demand for labor from the rural non-agriculture sector dropped in July, said Mahesh Vyas, managing director of CMIE said to Bloomberg.

“This led to a fall in rural labor seeking employment, which in turn led to a fall in the rural employment rate." The labor force in rural India fell by five million, the data showed. The labour force participation rate in urban areas also fell, indicating a broader weakness in the economy.

Creating enough jobs for Indians is crucial for Prime Minister Narendra Modi as he seeks a rare third term in office in the national polls next year. His administration is distributing appointment letters as part of a promise to provide one million government jobs by the end of this year amid wide discontent over rising unemployment.