With layoff notices being issued across industries, unemployment is a major issue in the country’s current economy. However, Karnataka has emerged as a ray of hope with the lowest unemployment rates in India. Yes, the unemployment rates in Karnataka are the lowest in the entire nation.
Unemployment Rates In Karnataka
According to data from the Centre for Monitoring Indian Economy (CMIE), unemployment rates in Karnataka in August have fallen to 0.7%.
This is the only state among the large states in India that has seen a fall in unemployment rates in the past few months.
In January 2017, Karnataka’s unemployment rate was its highest ever at 6.7%. The current unemployment rate is one-fifth of this.
Why The Lowest Unemployment Rates In Karnataka?
This change has been attributed in part to the growing demands of the information technology (IT) industry in Karnataka. IT is the largest contributor to job creation in Karnataka.
In Bengaluru alone, the IT sector has provided employment to over 1 million people in the last financial year.
The services sector has also played an important role in job creation. This includes Karnataka’s startup ecosystem. The service sector contributes more than two-thirds of Karnataka’s GDP.
The state’s manufacturing industries, services, startups, conducive work environment, and colleges attract talent and corporate interest from across India.
Unemployment Rates In The Rest of India
India’s overall unemployment rates in August 2019 stood at 8.2%. The country’s urban unemployment rate was 9.6% while the rural unemployment rate was 7.8%. Thus, Karnataka’s unemployment rate is less than 1/10th of the national levels.
|Jammu and Kashmir||22.4%|
The only other state that has shown a similar decline in unemployment levels in the state of Goa. The state’s unemployment rates fell from 12.4% in February 2017 to 3.7% in August 2019.
Telangana also shows a low degree of unemployment. Among the eastern states, Meghalaya and Sikkim have very low unemployment rates.
At the other end of the spectrum, Haryana had the highest unemployment rates. This has been attributed mainly to the slowdown in the auto-manufacturing sector. Unlike Karnataka and Goa, Haryana has seen unemployment rates grow from 1.85 in August 2017 to 28.7% in August 2019.
According to some estimates, over 1 million contractual jobs may have been lost in in the past year. Other states with high unemployment rates include Jammu and Kashmir, Tripura and Himachal Pradesh.