(Bloomberg) -- India’s jobless rate in July dropped to the lowest in six months as steady monsoon rains likely boosted agriculture activity in rural areas.
The overall unemployment rate eased to 6.80% in July, from 7.80% in June. That’s the lowest reading since 6.56% in January, data from private research firm Centre for Monitoring Indian Economy Pvt. on Monday showed.
The jobless rate in rural areas fell sharply to 6.14% in July, from 8.03% in the previous month, as monsoon rainfall was 9% above normal as of July 29. In June, rural unemployment increased as rains were below normal and patchy.
Urban unemployment rate last month, however, climbed to 8.21% from 7.30% in June, suggesting that the latest data may offer only short-term relief for Asia’s third-largest economy striving to provide more jobs. Any adverse monsoon pattern in August could curtail farm jobs.