JharkhandтАЩs economy is expected to grow by 8.8 per cent in the current financial year (2021-22) though the unemployment rate in the state continues to be in double digits and higher than the pre-Covid levels in January-February 2020, according to the economic survey for the current fiscal tabled in the state assembly by finance minister Rameshwar Oraon on Wednesday.
The economic survey, tabled a day ahead of the presentation of stateтАЩs budget for the next fiscal (2022-23), showed that Jharkhand economy contracted by about тВ╣11,000 crore (4.7 per cent), from тВ╣2,38,395 crore in 2019-20 to тВ╣2,27,082 crore in 2020-21, owing to the Covid 19 pandemic, which it reflected in the employment status as well, as per figures available up to September 2021.
тАЬAs per the estimates, the labour force participation rate (LFPR) was 45.1 per cent in 2017-18 and it increased to 55.9 per cent in 2019-20. The rate of unemployment decreased from 7.5 per cent to 4.5 per cent during the same period. It, however, increased sharply from April 2020 with the outbreak of Covid-19 and lockdown. It reached its peak in May 2020 but started decreasing thereafter. The unemployment rate decreased from 59.2 percent in May 2020 to 13.5 per cent in September 2021, according to the CMIE data,тАЭ the survey said under its labour and employment head.
Citing the data provided by CMIE (Centre for Monitoring Indian Economy), the survey says unemployment in Jharkhand was 10.6 per cent in January 2020 and 11. 8 per cent in February 2020, before the outbreak of Covid-19 and imposition of lockdown.
тАЬ…the rate of unemployment in urban Jharkhand has mostly been more than that of urban India during this period. With the resumption of economic activities in June 2020, the unemployment rate for both males and females started decreasing, but is still high because all activities have not resumed so far,тАЭ said the survey.
On the overall economy front, the economic survey has pegged gross state domestic product (GSDP) growth at 8.8 percent in the current financial year (2021-22), after a deceleration during the previous two financial years.
The survey said while 2019-20 witnessed deceleration due to тАЬeconomic slowdownтАЭ in the Indian economy at large, 2020-21 was affected by the Covid-19 pandemic. As a result, the GSDP of the state is estimated to have contracted by 4.7 percent in 2020-21, the survey said.
On the inflation front, the survey said that since December 2020, it has remained below six per cent, the benchmark set by the RBI in its new monetary policy framework.
