Uttar Pradesh's unemployment rate rises to a close 10% mark

According to the Centre for Monitoring Indian Economy (CMIE) data, the unemployment rate in the state of Uttar Pradesh doubled in 2019 as compared to the numbers in 2018.

The CMIE numbers showed that the unemployment rate in the most populated state of the country was hovering around 5.91% in 2018 but it grew at 9.95 % in 2019. As per the 2011 census, UP is home to nearly 20 crore people, which is over 16% of India's population.

Relation between the unemployment rate and GDP

As per official data, India's GDP growth stood at 4.5% in the second quarter of 2019. Reportedly, the decline in economic activity has resulted in higher unemployment numbers.

UP's unemployment rate was seen to be higher than that of the national average which grew at 7.7%. The unemployment rate of close to 10% means that nearly 10 in every 100 people are unemployed.

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Unemployment rate in other states

In the second most populated state of the country, Maharashtra, the unemployment rate grew at 4.87% in 2019. This is more than that of 3.81% in 2018. Unemployment is on a rise in other populous states of the country as well.

In Bihar, the rate rose sharply to 11.47% in 2019 from 7.84% in 2018, CMIE data showed. However, the state of Andhra Pradesh saw a marginal rise in the rate. The CMIE showed that unemployment rose from 4.6% in 2018 to 4.71% in 2019. 

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On the contrary, the unemployment rate declined in the state of West Bengal. The figures plummeted to 6.36% in 2019 from 7.05% a year back. Experts from across the board have expressed concern about the slowing Indian economy. Former Chief Economic Adviser (CEA) Arvind Subramanian went on claim that the Indian economy is facing a "Great Slowdown".

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GDP Growth Rate In Q2

India's second-quarter GDP (July-September) growth rate stood at 4.5% -- the slowest growth in almost seven years, as released by Central Statistics Office on Friday.

The previous quarter (April-June) GDP numbers were at 5% and the Q2 (2018-2019) stood at 7%. This development comes in spite of the government's various economic moves like the merger of nine PSU banks into four, major corporate tax cuts, policy changes in the automobile sector, reduction in tax regulations to boost foreign income, attract investors and increase the consumer demand. The government currently follows the base year of 2011-12.

(With Agency Inputs)

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