Slowing economy drove urban unemployment to four-quarter high in Q4FY20

The unemployment rate in urban areas jumped to a four-quarter high of 9.1 per cent in Q4 of 2019-20, just a few days into the Covid-19 lockdown. Compared to this, rate of joblessness stood at 7.9 per cent in the third quarter of the year. The rise in the unemployment rate could be due to the slowing economy as the gross domestic product (GDP) declined to at least a 17-year low of 3.1 per cent. The spike in the rate could also be attributed to a slightly higher willingness among women to participate in the job market as shown by the labour force participation rate in the chart. There were fewer workers as a proportion of population among males, while the trend was reversed among females during Q4 compared to Q3 of 2019-20.