Skip to main content

It's now official: Developed Gujarat's regular, casual workers earn less than 19 top states

Casual labour market in Vadodara, Gujarat
By Rajiv Shah
Though not as low as state chief minister Vijay Rupani claims it to be (0.9%), Gujarat’s unemployment rate, at least as reflected in a recent report released by the Government of India, is 4.8%, lower than the national average, 6%. Yet, ironically, the same report, released soon after the Lok Sabha polls came to an end in May 2019, brings to light an even grimmer reality: Lower wages in "model" and "developed" Gujarat compared to virtually the whole of India, including the so-called Bimaru states.
Published by the Ministry of Statistics and Programme Implementation, and based on a survey carried out across India between July 2017and June 2018, the report, “Annual Report: Periodic Labour Force Survey (PLFS)”, suggests that per month average wages or salary earnings for regular employees in Gujarat during April-June 2018 was Rs 14,528.24, which is lower than all major 21 states with the exception of West Bengal (Rs 11,978.99).
Low wages aren't just characteristic of what are called “regular employees”; things are no different with regard to casual labour. Thus, according to the PLFS report, average earnings of a casual worker in Gujarat during April-June 2018 was found to be just Rs 223.57 per day, lower than all major 21 states with the exception of two states -- Chhattisgarh (Rs 189.05) and Maharashtra (Rs 208.88).
The PLFS report finds that, among 21 major states, regular workers’ average wages/salaries per month during April-June 2018 were the highest in Jammu & Kashmir (Rs 21,197), followed by Jharkhand (Rs 20,460), Kerala (Rs 19,433), Haryana (Rs 18,890), Maharashtra (Rs 18,736), and Telangana (Rs 18624). On the other hand, Kerala’s average casual wages per day were found to be the highest in India (Rs 605), followed by J&K (Rs 374), Himachal Pradesh (Rs 365), Telangana (Rs 306), and Tamil Nadu (Rs 331).
The all-India average for the wages/salary earnings of regular earnings is Rs 16,847.65, and for casual workers Rs 270.78, much higher than  Gujarat. Interestingly, while the PLFS report refuses to give any explanation for the reason behind such low wages for both regular and casual workers, the Modi government’s thinktank Niti Aayog asserted in 2017 that while there have been “low and stable rates of unemployment over more than three decades”, the more serious problem, instead, is “severe underemployment.”
Citing acceptance of jobs with poor wages, a report gave anecdotal evidence to prove this. It said. “A recent advertisement for the post of 14 sanitary workers in Tamil Nadu secretariat attracted 4,000 applications, and these included a large number of engineers and MBA graduates. Goutam Das, in his book ‘Jobonomics’, estimates that India would have as many as 20 crore underemployed people with ‘bad jobs’ or no jobs by 2025.”
Taking a more focused view, the world’s top consultants, McKinsey, has suggested that low official unemployment rate “hides the fact that India has a huge army of underemployment”, pointing out, in India’s context “unemployment is not really an option”, and here “entering the informal sector as a worker is the norm.”
“Some 86% of India’s workforce is employed in the informal sector, and more than 90% is in informal employment”, the McKinsey Global Institute report says, underlining, “Rarely would a poor rural boy who had dropped out of school remain ‘unemployed’ – he would typically be put to ‘work’ on his family’s small piece of land or would lend a hand at the local kirana shop owned by his uncle.”
Not without reason, the data provided by the PLFS report, too, suggest that among the poorer sections very few poorer were “unemployed” compared to those who were educated, whether in Gujarat or in India. Thus, among those identified as “not literate” in the survey, just 1% reported as having been unemployed in Gujarat and 1.2% all-India. As for those educated up to primary level, the survey found 1.7% unemployment rate in Gujarat and 2.7% all-India.
On the other hand, in Gujarat, the unemployment rate among those who are finished higher secondary is 6.3%, those with diploma or certificate course a whopping 22.6%, among graduates 8.7%, and among post-graduates and above 10.8%. One witnesses a similar trend all-India: 10.3 among those who have finished higher secondary, it is 19.8% among those who have diploma or certificate courses, 17.2% among graduates, and 14.6% among post-graduates and above.
While it is a mystery what percentage of people in Gujarat, or for that matter in India, are underemployment, according an expert definition, “Underemployment refers to people who are working in a lower capacity than they are qualified for, including in a lower-paid job or for fewer hours than they would like to work. It’s different from unemployment in that the person is in fact, working, just not as much as they’d like or to the full extent of their abilities, skills, or education.”

Comments

Peter Thompson said…
Brilliant work!
sanu said…
Unemployment will rise further as market is floor with poor quality candidates
Uma said…
It is more important to look after cows than to worry about unemployed youth

TRENDING

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Uttarakhand tunnel disaster: 'Question mark' on rescue plan, appraisal, construction

By Bhim Singh Rawat*  As many as 40 workers were trapped inside Barkot-Silkyara tunnel in Uttarkashi after a portion of the 4.5 km long, supposedly completed portion of the tunnel, collapsed early morning on Sunday, Nov 12, 2023. The incident has once again raised several questions over negligence in planning, appraisal and construction, absence of emergency rescue plan, violations of labour laws and environmental norms resulting in this avoidable accident.

Pairing not with law but with perpetrators: Pavlovian response to lynchings in India

By Vikash Narain Rai* Lynch-law owes its name to James Lynch, the legendary Warden of Galway, Ireland, who tried, condemned and executed his own son in 1493 for defrauding and killing strangers. But, today, what kind of a person will justify the lynching for any reason whatsoever? Will perhaps resemble the proverbial ‘wrong man to meet at wrong road at night!’

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Budget for 2018-19: Ahmedabad authorities "regularly" under-spend allocation

By Mahender Jethmalani* The Ahmedabad Municipal Corporation’s (AMC's) General Body (Municipal Board) recently passed the AMC’s annual budget estimates of Rs 6,990 crore for 2018-19. AMC’s revenue expenditure for the next financial year is Rs 3,500 crore and development budget (capital budget) is Rs 3,490 crore.

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...