Bengaluru:India's unemployment rate hit a four-month high in December, data from the Centre for Monitoring Indian Economy (CMIE) showed on January 3.

The unemployment rate rose to 7.9% in December from 7% in November, its highest since 8.3% in August.

Economic activity and consumer sentiment have been hit in the country after a rise in cases of the Omicron coronavirus variant and social distancing restrictions in many States.

India's #unemployment rate reached a four-month high of 7.91% in December as compared to 7% and 7.75 per cent in November and October 2021, data from the Centre for Monitoring Indian Economy (CMIE) showed on Monday.

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— Mint (@livemint) January 3, 2022

Urban unemployment rate rose to 9.3% in December from 8.2%in the previous month while the rural unemployment rate was up 7.3% from 6.4%, the data showed.Many economists worry that the Omicron variant could reverse the economic recovery seen in the previous quarter.

By Prerana.