India’s jobless rate fell to the lowest level in four months in July, adding to signs of a nascent recovery in the economy where sales tax collections and demand for some commodities have signaled a rebound.
The unemployment rate dropped to 6.95% last month from 9.17% the previous month, according to latest data from private research firm Centre for Monitoring Indian Economy Pvt. While the rural jobless rate slid to 6.3%, urban unemployment stayed above 8%, showed the data, which is based on surveys and is widely accepted in the absence of timely government data.
The return of jobs is a positive for the economy, where private consumption makes up some 60% of gross domestic product, and is recovering from an unprecedented contraction last fiscal year. The International Monetary Fund sees India’s GDP growing 9.5% in the financial year.