Job growth to good kharif crop, a new equilibrium seems to be setting in

Preliminary labour statistics for the first three weeks of July indicate a further improvement in labour conditions in the mo­nth over last month’s dramatic turnaround. The labour participation rate has inched up and the unemployment rate has declined so far during the mo­nth. The gain hasn’t been as smooth and as confident as it was in June. We have worried about the June recovery facing fatigue towards the end of the month and in early July. But the net results seem to be headed towards consolidating and making further gains in July albeit lesser than in June.

Labour participation picked up