The national unemployment rate jumped 1.37% from 6.95% in July to 8.32% last month, according to the Centre for Monitoring Indian Economy (CMIE).
Urban unemployment increased almost 1.5 percentage points to 9.78% in August, as compared to 8.3% in July, 10.07% in June, 14.73% in May and 9.78% in April.
In the month of March, before the second wave of the COVID-19 pandemic hit India, urban unemployment stood at 7.27%.
Meanwhile, rural unemployment rose 1.3 percentage points to 7.64% in August against 6.34% in July, mainly driven by less sowing during the Kharif season.
India has faced a tough job scenario for the last few years. The situation exacerbated following the COVID-19 outbreak.
Although economic activity is steadily returning to normal, the job market is still striving. Across the country, at least eight states comprising Haryana and Rajasthan are clocking double-digit unemployment rates, CMIE data showed.
Haryana had the highest unemployment rate in August at 35.7%, followed by Rajasthan at 26.7%, Jharkhand at 16.0%, Tripura at 15.6%, and Bihar and Jammu & Kashmir each at 13.6%.
The 30-day moving average on unemployment by CMIE suggests that the urban unemployment rate was 8.16% on September 1, with the urban and rural unemployment rates at 9.78% and 7.42%.
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