Jobs slowly revive in Telangana, rate of unemployment falls to 5%

HYDERABAD: In what could cheer the ruling TRS, unemployment rate in the state is down to 5% in August — well below the national average of 8% — from 35% in May. Only Karnataka (below 1%), Odisha (1%), Gujarat (2%) and Meghalaya at 4% unemployment rate are faring better than Telangana and four other states, a survey by Centre For Monitoring Indian Economy (CMIE) said.
The turnaround in Telangana in just two months is being attributed to increased sowing operations and rise in manufacturing activity.Uttar Pradesh, Madhya Pradesh, Assam and Chhattisgarh have also managed to cut down the unemployment rate to around 5%, CMIE said.

Maharashtra, which is the worst-hit pandemic state in India, and neighbouring Andhra Pradesh, the second worst-affected state, are also staying afloat with unemployment rate hovering at 6% and 7% respectively.
The CMIE survey said Telangana had the highest unemployment rate in May this year, which was also the highest unemployment rate since 2016 going by the average monthly unemployment rate.
“Telangana stood second with 15% unemployment rate in June in the entire country. Thanks to some innovative unlock measures, the state was able to push down the unemployment rate to 5%,” it said.
Industries secretary Jayesh Ranjan said Telangana was the first state in the country to revive manufacturing sector soon after unlock 2.0. “By end of May, we quickly set in motion the supply chain with other states. Whether it was supply of raw material or farming-related equipment or revival of industrial activity, we took a clear-cut stand and set the ball rolling with renewed zeal despite the pandemic,” he told TOI.
According to Mahesh Vyas of CMIE, Telangana should now consolidate its gains. “The labour participation in Telangana had crossed 60% in August. This was much higher than pre-lockdown period thanks to smart recovery of economy and revival of agri operations in rural Telangana. A healthy kharif is also one of the key factors for the fall in unemployment rate,” he told TOI.
However, T Muralidharan, chairman of the Federation of Telangana Chambers of Commerce and Industry, said it was too early to assume that the state was on the recovery path. “Yes, the unemployment rate has come down. But, there will always be people whom we call ‘willingly unemployed.’ These are the people who do not seek jobs as they do not get a standard income. Telangana has about 10 lakh such people. Focus should be on reviving their fortunes too,” he said.