India's Unemployment Rate Declines To 7.95 Per Cent In July

India's overall unemployment rate has decreased recently, providing some relief for the government.

This decline can be attributed to the increased demand for agricultural labour in rural areas, as the monsoon season has begun.

In July, the total joblessness rate in India dropped to 7.95 per cent from 8.45 per cent in June, according to a report by Bloomberg.

The data, sourced from the Centre for Monitoring Indian Economy (CMIE), highlights this positive trend.

The entire country has been covered by the seasonal monsoon rains, which is crucial as it waters nearly half of the agricultural land and raises expectations of higher farm production and economic growth.

So far this season, the monsoon rains have been 4 per cent above normal.

According to Mahesh Vyas, the managing director of CMIE, the agriculture sector saw increased activity due to improved rains.

However, demand for labour from the rural non-agriculture sector dropped in July, leading to a decrease in the number of rural laborers seeking employment and a fall in the rural employment rate.

Data shows that the labour force in rural India decreased by five million.

Additionally, the labour force participation rate in urban areas also declined, indicating a broader weakness in the economy.

Prime Minister Narendra Modi's administration is facing the crucial task of creating enough jobs for Indians as he seeks a rare third term in office in the upcoming national polls.

In an effort to address rising unemployment and discontent, the government has promised to provide one million government jobs by the end of this year and has already begun distributing appointment letters.