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Employment rate could get worse as govt won't spend, private sector can't

The fall in the unemployment rate seen in recent weeks is meaningless and misleading in the face of a falling labour participation rate and a falling trend in the employment rate

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5 min read Last Updated : Sep 22 2020 | 1:09 PM IST

The unemployment rate dropped to 6.4 per cent in the week ended September 20. This is the lowest weekly unemployment rate seen in a long time. But, this is hardly a cause for celebration.

Other weekly labour market metrics for September so far indicate deterioration in conditions compared to the situation in August and also compared to the earlier months since the recovery. August itself had seen stagnation in the recovery process from the precipitous lockdown-induced fall of April. Deterioration from the August stagnation implies a possible slipping away of the recovery process seen till recently. This is what emerges

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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