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

'Tax the top': Nationwide protests demand action as 1% control 40% of India’s wealth

By A Representative   Civil rights groups across the country observed the martyrdom day of Bhagat Singh on March 23, as people from diverse backgrounds united to raise their voices against growing economic inequality. The mobilisations marked the launch of a nationwide campaign against inequality, running from March 23 to April 14 (Ambedkar Jayanti), under the banner of the “Tax The Top” campaign.

Fair prices, fresh produce: Vegetable market opens in Rajasthan tribal village

By Vikas Meshram*  On 18 March 2026, the tribal village of Sajjangarh in southern Rajasthan witnessed the grand and dignified inauguration of a new vegetable market (mandi). Established through the tireless joint efforts of the Krushi Avam Adivasi Swaraj Sangathan (Bhilkuaan) and Vaagdhara, under the active leadership of the Gram Panchayat of Sajjangarh, the market is being hailed as a cornerstone for local self-governance, self-reliance, and a sustainable rural economy. 

Beyond India-China borders: Economic links expand, political gaps persist

By Bhabani Shankar Nayak*  Despite growing trade between India and China, a persistent trust deficit continues to shape their bilateral relationship. Expanding economic engagement has not fully resolved political differences, many of which stem from historical legacies as well as contemporary geopolitical concerns. Border disputes—often traced to colonial-era arrangements—remain a significant obstacle to deeper cooperation, while differing strategic alignments in global affairs add further complexity.

Gujarat cadre to HDFC: When bureaucratic style hits corporate walls

By Rajiv Shah   I was a little amused by the abrupt March 17, 2026 resignation of Atanu Chakraborty —a Gujarat cadre IAS officer of the 1985 batch who retired from the government in 2020—as chairman of HDFC Bank . Much of what may have led to his decision to quit this ostensibly high post—actually a non-executive, part-time role—is by now well known. I followed most of it online with considerable interest, partly because I had interacted with him umpteen times during my stint as The Times of India correspondent in Gandhinagar from 1997 to 2012.

Ex-IAS Atanu Chakraborty and a tale of two different Gujarat vision documents

By Rajiv Shah  The likely appointment of Atanu Chakraborty as HDFC Bank chairman interested me for several reasons, but above all because I have interacted with him closely during my more than 14 year stint in Gandhinagar for the “Times of India”. One of the few decent Gujarat cadre bureaucrats, Chakraborty, belonging to the 1985 IAS batch, at least till I covered Sachivalaya was surely above controversies. He loved to remain faceless, never desired publicity, was professional to the core, and never indulged in loose talk. When he neared retirement, which happened in April 2020, first there were rumours in Sachivalaya that he would be appointed SEBI chairman, and then there was talk he would be chairman (or was it CEO?) of Gujarat International Finance Tec (GIFT) City (a dream project of Narendra Modi as Gujarat chief minister, which as Prime Minister Modi wants to promote, come what may). But, for some strange reasons, and I don’t know why, none of this happened, despite the fact...

Witnessing Iran beyond propaganda: Truth, war, and the path beyond western paradigm

By Naile Manjarrés  On June 23, 2025—marked as the 2nd of Tir, 1404, on the Persian calendar—a ceasefire between Iran and Israel was announced. This "night of the decree" shifted the trajectory of global affairs; although the world may appear unchanged on the surface, we have yet to fully grasp its impact.

Operation Epic Fury: Making America great at the world’s expense?

By N.S. Venkataraman*  ​The decades-long enmity between Iran and Israel is well-documented, but historically, their direct confrontations have been brief, constrained by the logistical and economic limitations of sustained warfare. The current conflict in the Middle East, however, marks a radical and dangerous departure from this pattern. 

Environmental expert urges policy overhaul as forest and water resources face critical decline

By A Representative   On the occasion of World Forest Day and World Water Day , observed on March 21 and 22, environmental voices from the Western Ghats have issued a stark warning to the Union government, calling for an urgent paradigm shift in how India manages its interconnected natural resources. In a formal communication addressed to Union Minister for Jal Shakti , Sri C R Patil , and Union Minister for Forest, Environment and Climate Change , Sri Bhupendra Yadav , policy analyst Shankar Sharma has highlighted a growing disconnect between sectoral policies and the holistic reality of resource governance.

From chemicals to self-reliance: Women-led initiatives drive sustainable farming push

By Bharat Dogra   Farmers in Bariyarpur village of Ajaygarh block (Panna, Madhya Pradesh) are increasingly adopting sustainable and self-reliant farming practices, responding enthusiastically to new opportunities created by recent development initiatives.