NEW DELHI: UP has logged the highest rate of decline in unemployment rate among major states in the period between August 2016 and February this year on the back of Centre's focus on rural jobs scheme MGNREGA .

According to the latest report by SBI Research, a wing of the country's largest bank, SBI, during this period India’s unemployment rate nearly halved to 4.8% in February from 9.5% in August 2016.

The report is based on estimates by BSE and CMIE worked out on the basis of data collected on employment/unemployment status of all members of 15 years or older from a sample of randomly-selected households. The report does not, however, indicate the sample size.

UP saw the sharpest fall in unemployment at 17.1% to 2.9 %. Bihar was right behind UP, with 13% decline in unemployment rate, which fell to 3.7% in February.

Madhya Pradesh and Odisha are the other two states that logged 10% drop in unemployment to 2.7% and 2.9%, respectively. Jharkhand saw a decline of 9.5% to 3.1% in the unemployment rate.

The report attributes the decline in unemployment rate primarily to the Narendra Modi government's efforts in to generate employment opportunities in rural areas.

"This decline is also explained by households demanded/allocated work under MGNREGA, which increased from 83 lakh households in October 2016 to 167 lakh households in Februrary 2017. Hence, on the one hand the unemployment rate has halved, on the other hand work de-manded has doubled," says the report.

It notes that the number of works completed under MGNREGA increased 40% to 50.5 lakh in FY17 compared to 36.0 lakh in FY16.

Notable increase was registered in the works of Anganwadi (166%), Drought Proofing (158%), Rural Drinking Water (698%) and Water Conservation & Harvesting (142%).

MGNREGA has been allocated a budgetary resource of Rs 48,000 crore in this year's Budget. During FY18, another 5 lakh farm ponds will be taken up, compared to expected 10 lakh farm ponds during FY17. This single measure will contribute greatly to drought proofing of gram panchayats, says the report.

