India's unemployment rate increased to a four-month high as more people entered the labour force than there were jobs available in Asia's third-largest economy.
The national unemployment rate increased from 7.8% in March to 8.11% in April, which is the highest level since December. According to data from the research firm Centre for Monitoring India Economy, urban unemployment increased to 9.81% from 8.51% in the same time while rural unemployment decreased slightly to 7.34% in April from 7.47% a month earlier.
According to CMIE data, rural areas created more jobs than urban areas. Only 54.8% of job seekers in urban areas found employment, compared to 94.6% of those who entered the labour force in rural areas. The results of CMIE are consistent with declining demand for the government's job guarantee programme in rural areas.
The Reserve Bank of India stated in its April bulletin that higher winter crop planting and a recovery in the informal sector employment had led to a moderation in demand for labour under the Mahatma Gandhi National Rural Employment Guarantee Act since January.