Unemployment rate at 20.8% in urban India in Q1 of 2020 due to stringent nationwide lockdown

Labour minister Bhupender Yadav on Monday said India witnessed an unemployment rate of 20.8% in urban India in the April-June quarter 2020, a period which witnessed two months of stringent nationwide lockdown to prevent the spread of the first wave of Covid-19 pandemic.

The minister, in response to a question in Lok Sabha, quoted the Periodic Labour Force Survey and said the complete picture of employment and unemployment situation in the country can be assessed only from survey data for the entire year covering both rural and urban areas.

“As per current weekly status(CWS) in urban areas for persons of age 15 years and above in the country to the extent available for the quarter ending July-September 2019, October-December 2019, January-March 2020 and April-June 2020 were 8.3%, 7.8%, 9.1% and 20.8% respectively,” he said.


“The complete picture of the employment and unemployment situation in the country can be assessed only from survey data for the entire year covering both rural and urban areas,” he added.

As per the results of annual Periodic Labour Force Survey of the ministry of statistics and programme implementation, the unemployment rate for persons of 15 years and above on usual status (principal status + subsidiary status) basis in India stood at 6% and 5.8% during 2017-18 and 2018-19 respectively. PLFS for 2019-20 is expected to be out later this month.

In response to a separate question, the minister said COVID-19 pandemic followed by lockdowns has affected economies across the globe including India and the government has taken several initiatives to address the challenges and threats posed by the pandemic.

“Employment generation coupled with improving employability is the priority of the government. We are providing a fiscal stimulus of more than Rs 27 lakh crore as part of the Aatmanirbhar Bharat financial package,” he added.

Besides, the government has taken various steps for generating employment in the country like encouraging various projects involving substantial investment and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. DeenDayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deendayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM), he added.