Skip to main content

Gujarat has higher than national average underemployment rates: NSSO

By Rajiv Shah 
Gujarat government may be happy that Government of India reports have been saying that Gujarat has fewer unemployed than other states. However, latest reports, including the Academic Foundation’s “India Labour and Employment Report 2014” and the National Sample Survey Organisation’s “Employment and Unemployment Situation in India, 2011-12” report point towards the need to look at the problem of underemployment, which is higher in Gujarat than several Indian states.
The Gujarat government has for long been claiming that its unemployment rate is one of the lowest. Quoting the Labour Bureau data, released by the Government of India, it said recently (click HERE to read) that Gujarat’s unemployment rate in the year 2011-12 “has the least unemployment rate among all states across the country”. Celebrating it as Gujarat government success, it officially declared, “According to the report, while India’s jobless rate stood at 3.8 per cent during the last fiscal, Gujarat showed lowest rate of 1 per cent. The report also noted that Gujarat has an extremely low unemployment rate among females in urban areas.”
The state government observation did not end here. It said, “The Labour Bureau conducted this survey, and the first such survey was conducted in 2009-2010. The Bureau is an apex organization for providing database at the national level for research and policy formation. This report is yet another indication of Gujarat’s vibrant strides in every sphere including providing a steady stream of jobs for its people, especially the youngsters.” This has happened allegedly because of its “staunch” advocacy in “strengthening the people of the state with appropriate skill sets that would enable them to maximize their potential in the job market.”
The latest “India Labour and Employment Report 2014”, prepared by the high-profile Academic Foundation, New Delhi, with the help of Institute for Human Development scholars, has sought to indirectly contradict such an approach, taken by the Gujarat government in showcasing how unemployment rate in Gujarat is low. It says, “As is typical for a poor and developing economy, most workers in India cannot afford to be unemployed, hence the level of open unemployment is quite low at 2.7 per cent.” It adds, “Even the more comprehensive current daily status (CDS) measure of unemployment reaches only 5.6 per cent.”
Seeking to pinpoint the problem, the report states, “In reality, the problem is not primarily one of unemployment but lack of productive employment”, suggesting the need to find out how many workers are underemployed, instead of suggesting an unemployment rate. Taking a cue from the need to take a look at underemployment afresh, for the first time, the National Sample Survey Organization’s report, “Employment and Unemployment Situation in India, 2011-12”, released in January 2014, seeks to suggest how many people in different states were actually suffered from a much higher underemployed than unemployment.
Putting out data on the number of persons who did not work “more or less regularly throughout the year” the report finds that in Gujarat, this predicament befell 11.6 per cent workers in the age group 15 years and above in the rural areas, and 5.8 per cent workers in the same age group in the urban areas. This, the report states, is higher than the national average – which is 10.6 per cent in the rural areas and 5.7 per cent in the urban areas. A comparison with other Indian states suggests that there is lower underemployment than Gujarat’s in rural areas of 12 major Indian states out of 20, and seven states in the urban areas.
Thus, as against 11.6 per cent underemployment in Gujarat’s rural areas, major states with lower underemployment ratio were Andhra Pradesh (8.8 per cent), Assam (8.5 per cent), Bihar (10 per cent), Haryana (9 per cent), Himachal Pradesh (5.6 per cent), Jammu & Kashmir (7 per cent), Karnataka (4.8 per cent), Maharashtra (10.3 per cent), Odisha (9.8 per cent), Punjab (5.8 per cent), Uttarakhand (9.7 per cent), and Uttar Pradesh (8.5 per cent). In the urban areas, too, the states with a higher underemployment rate than Gujarat (5.8 per cent) were Andhra Pradesh (3 per cent), Assam (5.3 per cent), Haryana (2.9 per cent), Himachal Pradesh (4.4 per cent), Jammu & Kashmir (5.5 per cent), Punjab (3.2 per cent), and West Bengal (5.2 per cent).
The fact that underemployment needs to be taken into account in calculations while analyzing joblessness was highlighted in the “State of the Urban Youth-India 2013 Report” released by the UN Habitat and IRIS Knowledge Foundation in Mumbai in October 2013. The UN report said, “The availability of employment and access to services is not commensurate to the number of people demanding them. Young people are advised to pursue education towards white-collar jobs, but a large portion of real job creation is in the informal sector. The youth are neither prepared for it, nor consider it aspirational.” The report recommends skill development as a reasonable alternative.

Comments

TRENDING

Academics urge Azim Premji University to drop FIR against Student Reading Circle

  By A Representative   A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.

'Policy long overdue': Coalition of 29 experts tells JP Nadda to act on SC warning label order

By A Representative   In a significant development for public health, the Supreme Court of India has directed the Food Safety and Standards Authority of India (FSSAI) to seriously consider implementing mandatory front-of-pack warning labels on pre-packaged food products. The order, passed by a bench of Justices J.B. Pardiwala and K.V. Viswanathan on February 10, 2026, comes as the Court expressed dissatisfaction with the regulatory body's progress on the issue.

When tourism meets tribal law: The Vanajangi dispute in Andhra Pradesh

By Palla Trinadha Rao   A writ petition presently before the High Court of Andhra Pradesh has brought into focus an increasingly important question in the governance of tribal regions: can eco-tourism projects in Scheduled Areas be implemented without the consent of the Gram Sabha? The case concerns the establishment of a Community Based Eco-Tourism centre at Vanajangi village in Paderu Mandal of Alluri Sitarama Raju District, a region located within the Scheduled Areas of Andhra Pradesh. 

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative   The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress. 

The ultimate all-time ODI XI: A personal selection of icons across eras

By Harsh Thakor* This is my all-time best XI chosen for ODI (One Day International) cricket:  1. Adam Gilchrist (W) – The absolute master blaster who could create the impact of exploding gunpowder with his electrifying strokeplay. No batsman was more intimidating in his era. Often his knocks decided the fate of games as though the result were premeditated. He escalated batting strike rates to surreal realms.

India’s green energy push faces talent crunch amidst record growth at 16% CAGR

By Jag Jivan*  A new study by a top consulting firm has found that India’s cleantech sector is entering a decisive growth phase, with strong policy backing, record capacity additions and surging investor interest, but facing mounting pressure on talent supply and rising compensation costs .

Aligning too closely with U.S., allies, India’s silence on IRIS Dena raises troubling questions

By Vidya Bhushan Rawat*  The reported sinking of the Iranian ship IRIS Dena in the Indian Ocean near Sri Lanka raises troubling questions about international norms and the credibility of the so-called rule-based order. If indeed the vessel was attacked by the American Navy while returning from a joint exercise in Visakhapatnam, it would represent a serious breach of trust and a violation of the principles that govern such cooperative engagements. Warships participating in these exercises are generally not armed for combat; they are meant to symbolize solidarity and friendship. The incident, therefore, is not only shocking but also deeply ironic.

India’s foreign policy at crossroads: Cost of silence in the face of aggression

By Venkatesh Narayanan, Sandeep Pandey  The widely anticipated yet unprovoked attack on Iran on March 1 by the United States and Israel has drawn sharp criticism from several quarters around the world. Reports indicate that the strikes have resulted in significant civilian casualties, including 165 elementary school girls, 20 female volleyball players, and many other civilians. 

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

  By Rajiv Shah   This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.