Mumbai, Oct 2 (IANS): India's unemployment rate fell to its lowest level in 12 months during September as the number of those without jobs declined in both rural and urban areas of the country, according to data compiled by the Centre for Monitoring Indian Economy (CMIE).

The overall unemployment rate declined to 7.09 per cent in September down from 8.10 per cent in August. The figures mark a reversal as the unemployment rate in August had shot up in August from 7.9 per cent in July.

India's monsoon rainfall this year was its lowest since 2018 as the El Nino weather pattern made August the driest in more than a century, according to the weather department.

However, the rains picked up momentum again in September which had led to a revival in farm activity that appears to have created more jobs in the rural areas during the month.

Similarly, urban unemployment appears to have come down as key festivities gather momentum in September with Ganesh Chaturthi leading to more hiring, especially in the retail sector, that is also done keeping in mind that the Diwali and Dussehra festivals will follow soon after.