India’s unemployment rate hit a four-month high in December, data from the Centre for Monitoring Indian Economy (CMIE) showed on Monday.

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

Economic activity and consumer sentiment have been hit in the South Asian nation after a rise in cases of the omicron coronavirus variant and social distancing restrictions in many states.

Urban unemployment rate rose to 9.3 per cent in December from 8.2 per cent in the previous month while the rural unemployment rate was up 7.3 per cent from 6.4 per cent, the data showed.

Many economists worry that the omicron variant could reverse the economic recovery seen in the previous quarter.

Mumbai-based CMIE data on unemployment is closely watched by economists and policymakers as the government doesn’t release monthly figures.