Inflation and Employment Nexus in India: A Post-Pandemic Analysis (2020–2025)

Abstract

The present study investigates the relationship between inflation and employment in India during the post-pandemic period (2020–2025). Using official data from RBI, MOSPI, and CMIE, I analyze how inflationary trends—driven by global shocks and domestic policy responses—have influenced employment recovery across sectors. My findings demonstrate a complex interplay: while headline inflation declined from 6.7% in 2022 to 2.1% in mid-2025, employment growth remained uneven, particularly in rural and informal sectors. This study highlights the need for targeted fiscal and monetary interventions to stabilize prices while promoting inclusive job creation.