India's unemployment rate drops to 6.43 per cent in September: CMIE

India's unemployment rate dropped drastically to 6.43 per cent in September on the back of increase in labour participation in the rural and urban areas, data released by the Centre for Monitoring Indian Economy (CMIE) on Saturday said.

Last month, unemployment rate surged to 8.3 per cent as employment sequentially fell by 2 million to 394.6 million.

"In September, the unemployment rate has fallen significantly with an increase in labour participation in both urban and rural areas," CMIE managing director Mahesh Vyas told PTI.


In the rural areas, unemployment rate tanked to 5.84 per cent in September from 7.68 per cent in August, while in the urban areas it fell to 7.70 per cent against 9.57 per cent in the previous month.

Vyas said that the nearly 8 million increase in labour participation was a sign that the economy was doing well.

As per the data, unemployment rate was the highest in Rajasthan at 23.8 per cent in September, followed by Jammu and Kashmir at 23.2 per cent, Haryana at 22.9 per cent, Tripura at 17 per cent, Jharkhand at 12.2 per cent and Bihar at 11.4 per cent.

The unemployment was the lowest in Chhattisgarh at 0.1 per cent in September, followed by Assam at 0.4 per cent, Uttarakhand at 0.5 per cent, Madhya Pradesh at 0.9 per cent, Gujarat at 1.6 per cent, Meghalaya at 2.3 per cent and Odisha at 2.9 per cent.