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The Centre for Monitoring Indian Economy (CMIE) in its latest data has showed that the country's unemployment rate fell from 7.80 per cent in June to 6.80 per cent in July, the lowest level in the last six months, amid rising agriculture activities during monsoon. Rural unemployment declined 6.14 per cent to 272.1 million last month from 265.2 million or 8.03 per cent in June. On the other hand, urban unemployment jumped to 8.21 per cent in July from 7.80 per cent in June as the number of jobs fell both in industry as well as services. The employment in urban India fell by 0.6 million, from 125.7 million to 125.1 million.

CMIE Managing Director and CEO Mahesh Vyas said the month-on-month recovery in employment was partial as the fall in June was 13 million compared to the growth of only 6.3 million jobs in July. The recovery was mainly in rural areas and in particular in agriculture as the southwest monsoon progressed and kharif sowing activities picked up pace. Vyas added the agriculture sector in the rural area absorbed an additional 9.4 million workforce in July, while it shed 8 million in June. This lower-than-expected absorption of labour into agriculture in July reflects the patchy progress of the southwest monsoon and the correspondingly poor kharif sowing this year.

He said that the industrial sector lost 0.2 million jobs in July after having lost 4.3 million during June, while the services sector lost 2.8 million jobs in July after having lost 0.8 million in June. He added that the industrial and services sectors have been losing jobs for two months. In May, the employment in the industrial sector had shot up to 108 million, but since then it has declined to 104 million in June and July. He noted that the recovery in industrial jobs was essentially in the construction industry and not in manufacturing, which are of better quality. Over 8 million non-farm jobs were lost during June and July, equally both in the industry and services sectors.